India Wont Shut Coal Power Plants Until 2030 To Meet Surging Electricity Demand: Report

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India Won't Shut Coal Power Plants Until 2030 To Meet Surging Electricity Demand: Report

Last year, in May, India announced that it plans to decrease the power generation from at least 81 coal-fired plants for the next four years; however, the proposal did not include closing down any of its 179 coal power units.

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The central government has directed power utilities not to retire coal-fired power plants until 2030 because of a surge in demand for electricity. The development came following a notice by the union power ministry, just over two years after committing to eventually scale down the fuel usage.

Last year, in May, India announced that it plans to decrease the power generation from at least 81 coal-fired plants for the next four years; however, the proposal did not include closing down any of its 179 coal power units. Further, the country has not set an official timeline for scaling down coal usage.

In a notice dated January 20, sent to officials of the union power ministry, the Central Electricity Authority (CEA) stated, "It is advised to all power utilities not to retire any thermal (power generation) units till 2030 and ensure availability of units after carrying out renovation and modernisation activities if required."

Surge In Demand For Electricity

The CEA, which serves as an advisor to the ministry, mentioned a December meeting where the Union power minister had directed not to retire the ageing thermal power plants and instead expand the lifespan of such units "considering (the) expected demand scenario".

India, which is the world's second-largest user, producer, and importer of coal worldwide, fell short of its 2022 objective of adding renewable energy by about a third. Coal is responsible for roughly three-quarters of the total yearly power output.

In India, the surge in demand for electricity was reported in the last few months because of the intense weather, growing household usage of electricity as more organisations allow employees to work from home, and an uptick in industrial activity following the relaxation of coronavirus-related restrictions.

According to NDTV, while speaking on the condition of anonymity, a senior official at a utility in south India stated, "Peak power demand has already risen 5 per cent this year. If it increased by another 3-4 per cent, we could be staring at another crisis. There is no question of retiring old coal units."

Also Read: For The First Time In India, Enrolment In Higher Education Institutes Surpasses 4-Crore Mark

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