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India developing excessive coal power capacity: Study

Posted on : 08-08-2023 | Author : TNN

Photo by Times of India

Nagpur: During the first five months of this year, nearly 11.5 gigawatts (GW) of coal power capacity under development progressed through various approval stages in India, as indicated by the latest analysis from Global Energy Monitor (GEM) and the Centre for Research on Energy and Clean Air (CREA).

The nation is actively advancing 65.3 GW of coal power capacity, with 30.4 GW in the construction phase and 35 GW in different pre-construction phases. The researchers noted that around 3.9 GW of coal projects received approval, while 7.6 GW obtained Terms of Reference, moving them closer to receiving permits.

Flora Champenois, a research analyst at GEM, commented, "India’s coal approval spree in 2023 marks a change in the country’s energy transition pattern. Last year, it did not approve any new coal power plants for the grid, which was in line with the global trend of moving away from the dirty, expensive, and outdated energy."

The analysis further reveals that the current coal power capacity proposals exceed the significant expansion projected in the National Electricity Policy (NEP 2023). It indicates that more than 8 GW of non-captive coal-fired power plants currently under construction are unnecessary, and all 34.9 GW of pre-construction capacity is also not needed. According to the plan's 10-year coal projections, there is no requirement for new projects to enter the pre-construction pipeline.

Sunil Dahiya from CREA emphasized that the electricity demand estimated in the plan has consistently been over-projected, leading to non-performing assets (NPAs) worth billions of dollars in the past. He cautioned that the continued push for additional coal power proposals surpasses requirements and may lead to more stranded assets.

Dahiya pointed out that proceeding with these projects would exacerbate financial challenges and result in future climate, air pollution, and health crises. He stressed the need for immediate and effective measures to prevent such disasters.

The researchers also highlighted the opportunity for India to accelerate the global transition from coal to clean energy at the upcoming G20 leaders' summit in New Delhi.