80 GW Goal: India’s Coal Capacity Plan for Sustainable Energy

The Indian government, in collaboration with industry stakeholders, is planning to add 80 gigawatts (GW) of coal-based thermal power capacity by the fiscal year 2031-32. This decision comes as a response to the country’s rapidly increasing power demand and the need for continuous power supply to sustain economic growth. Here’s a detailed overview of this development:

Overview of the Plan

1. Capacity Addition Goal: The government aims to add 80 GW of thermal power capacity by 2031-32. This is in addition to the 27 GW currently under construction​​​​​​.
2. Demand Projections: India’s peak power demand is expected to spike to 335 GW by 2030, up from the current level of 241 GW. This increase reflects the rise in electricity consumption in the country due to the expansion of economic activities and per capita usage​​​​.
3. Focus on Coal-Based Thermal Power: The decision to focus on coal-based thermal power stems from the understanding that renewable energy capacity alone cannot meet the rising electricity demand. The limitations of rapid nuclear capacity expansion also factor into this decision. Therefore, the initiation of work on an additional 55-60 GW of thermal capacity is planned to address the surging demand​​​​​​.
4. Current and Future Installed Capacity: As per the National Electricity Plan projections for the period 2022-32, the required coal and lignite-based installed capacity will be 283 GW by 2031-2032, compared to the present installed capacity of 214 GW​​​​.
5. Renewable Energy Goals: Despite the focus on coal-based power, India has set an ambitious target of having 500 GW of renewable energy capacity by 2030. The addition of coal-based capacity is seen as a necessary step until energy storage becomes viable and scalable for round-the-clock supply through renewable energy​​​​.
6. Minister’s Perspective: Union Power Minister R.K. Singh emphasized the importance of thermal power in meeting India’s power demands and pointed out the hypocrisy around renewable energy propagated by developed countries. He highlighted that India’s per capita emission is among the lowest in the world​​​​.

Industry and Government Interaction

• The Union Ministry for Power and New & Renewable Energy conducted interactions with key stakeholders in the power sector to assess the progress of thermal power capacity addition and address challenges faced by the industry​​.
• EPC vendors like GE and L&T voiced concerns regarding the bidding process. The minister asked vendors and contractors to submit their concerns and suggestions for devising workable solutions​​.
• The Power Secretary stressed that thermal energy would remain relevant even in 2047, urging the private sector to proactively add capacities to meet base load requirements​​.

Implications and Future Outlook

• The plan for substantial coal-based power capacity addition signals India’s pragmatic approach to meeting its growing energy demands while balancing renewable energy goals.
• The government’s proactive engagement with the industry indicates a concerted effort to address operational challenges and ensure a smooth capacity expansion process.

This initiative represents a crucial step in India’s energy strategy, balancing the immediate need for reliable power with long-term renewable energy ambitions. The government’s commitment to ensuring 24×7 power availability underscores the importance of this capacity addition in sustaining India’s economic growth trajectory.