India Faces Power Surge with Biggest Coal Expansion in a Decade

20th June 2024

Report : India’s coal power surges to meet power demand with biggest coal expansion in 10 years.

India is poised for a significant increase in its coal-fired power capacity, with projections indicating the largest annual addition in nearly a decade. This comes amidst the country’s grapple with surging electricity demand fueled by robust economic growth and intensified by extreme heat waves.

According to industry sources, India is expected to add a staggering 15.4 gigawatts (GW) of coal power capacity by March 2025. This marks a substantial rise compared to recent years and signifies the greatest annual jump since 2016.

The reliance on coal as a primary source of electricity generation remains prevalent in India. Coal currently dominates the power sector, accounting for roughly 75% of the total output. This dependence is anticipated to continue for at least the next ten years.

While India has ambitious clean energy targets, progress in this area has been slow. Large-scale renewable energy projects face challenges, and the development of low-carbon alternatives like large dams and nuclear plants has also been sluggish.

This has led to a course correction in India’s energy strategy. Last year, the country announced revised plans to bolster its coal-fired capacity by nearly 90 GW by 2032, a significant upward revision from earlier projections. This signifies a potential shift in focus towards ensuring near-term energy security.

The urgency to ramp up power generation is further underscored by the ongoing infrastructure development. As per industry sources, approximately 28.5 GW of coal power projects are currently under construction in India. Additionally, plans are in place to award contracts for a staggering 50 GW of new coal-fired plants over the next three years.

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The decision to prioritize coal expansion has drawn mixed reactions. While some acknowledge the short-term necessity to meet the growing power demand, others express concerns about the long-term environmental consequences.

Coal combustion is a major contributor to greenhouse gas emissions, and continued reliance on this fossil fuel could potentially hinder India’s efforts to combat climate change.

Those advocating for renewable energy sources point towards advancements in battery storage technology. However, these solutions are yet to become commercially viable within India’s competitive power market. Additionally, pumped hydroelectric storage, another alternative storage technology, is still in its early stages of development in the country.

The Indian government faces a complex challenge in balancing its immediate need for energy security with its long-term commitment to clean energy transition. While the current focus seems to be on coal-fired capacity expansion, India will likely need to navigate a delicate path towards a more sustainable energy mix in the coming years.

Conclusion

India’s decision to significantly increase its coal-fired power capacity reflects the immediate challenges of meeting the country’s growing electricity demand. However, this approach comes at a potential environmental cost. As India moves forward, it will be crucial to find ways to bridge the gap between short-term energy security and long-term climate goals. This might involve accelerating the development of renewable energy sources and storage solutions to ensure a sustainable energy future.

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