India could build new coal-fired power plants as they generate cheaper energy, according to a draft electricity policy document seen by Reuters, despite growing calls from environmentalists to deter the use of coal.
The contribution of coal to electricity generation in India fell for the second year in a row in 2020, marking a decades-long deviation in coal energy growth. Still, fuel accounts for nearly three-quarters of India’s annual power output. Read more
Environmental activists have long rallied against India to add new coal capacities. Solar and wind energy prices are falling to record lows, which would help the world’s third-largest greenhouse gas emitter reduce emissions.
U.S. Special Presidential Climate Envoy John Kerry this month said India “was doing the work on the climate, pushing the curve,” as it began talks with government leaders aimed at reducing emissions. carbon faster to curb global warming.
But a 28-page draft of the National Electricity Policy (NEP) 2021, which has not been made public, showed that India could add new coal-generating capacity, while recommending stricter technological standards to reduce the pollution.
“While India is committed to adding more capacity through non-fossil generation sources, it may still be necessary to add coal-based generation capacity to the country as it remains the cheapest generation source,” it was said. in the draft NEP.
All future coal-based plants should only deploy so-called “ultra super critical” technologies that are less polluting “or another more efficient technology,” he added.
The state-owned company NTPC Ltd (NTPC.NS), India’s leading electricity producer, said in September it would not acquire land for new coal projects. Private companies and many state-run ones across the country have not invested in new coal-fired power plants for years saying they were not economically viable.
A source with direct knowledge said a government group made up of several energy sector experts and officials will discuss the draft and could make changes before applying for cabinet approval.
India’s power ministry did not immediately respond to a request for comment on Sunday.
The draft document also proposed the trade in renewable energy in previous day’s markets, creating separate tariffs for electric vehicle charging stations and privatizing electricity distribution companies.
ALTERNATE POWER SUPPLIES
NEP 2021 is India’s first attempt to revise its electricity policy enacted in 2005, when the country produced negligible renewable energy.
Experts say the phasing out of renewable energy sources and the rapid elimination of conventional sources, such as coal and natural gas, could lead to instability in the electricity grid, which could cause blackouts.
While suggesting a flexible use of coal and natural gas energy to ensure the stability of the electricity grid in the coming years, the draft policy includes the promotion of clean energy as the main objective.
The draft policy suggested speeding up the adoption of “cost-effective” pumped-up hydraulic storage to support the power grid, adding that only 4.8 gigawatts (GW) of potential potential have been developed so far. 96.5 GW pumped storage.
The policy also recommends offsetting natural gas plants to operate with reduced efficiency to ensure grid stability and to suffer greater wear and tear due to generation fluctuations.
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