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Govt says no plan formulated to phase out old coal-based power plants

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Govt says no plan formulated to phase out old coal-based power plants

Posted on : 09-08-2023 | Author : Press Trust of India

Photo by Bloomberg

The government clarified on Tuesday that it hasn't developed any plan to phase out old coal-based thermal power plants across the country. India has set forth an ambitious energy transition program, aiming for 500 GW of renewable energy capacity by 2030.

In response to a query about the potential phase-out of old coal-based thermal power plants, including in Odisha, Power Minister R K Singh stated that the Central Electricity Authority, through an advisory issued on January 20, 2023, proposed that the retirement or repurposing of coal-based power stations would not occur before 2030. This approach is aligned with expected energy demand and capacity availability in the future.

Singh further indicated that thermal power plant operators were advised to undertake Renovations & Modernisation (R&M) and Life Extension (LE) measures for their units, either to continue operating until 2030 and beyond or to function in a two-shift mode. This step aims to facilitate the integration of solar and wind energy into the grid where feasible.

Regarding the phasedown or retirement of units, Singh explained that power generation is a delicensed activity as per the Electricity Act, 2003, and such decisions are made by power generating companies based on their own technological, economic, and environmental considerations.

Singh also highlighted the adoption of super-critical/ultra super-critical technologies by a significant number of thermal power plants in the country to enhance efficiency and reduce carbon emissions. Currently, 94 coal-based thermal units with a total capacity of 65,150 MW operate using super-critical/ultra super-critical technologies.

In terms of performance, Singh reported an increase in power generation from coal-based power plants, reaching 1,145.90 billion units in 2022-23, up from 1,041.48 billion units in 2021-22. Coal imports similarly rose to 55.6 million tonnes in 2022-23 from 27 million tonnes in the previous year, with 14.2 million tonnes imported in the April-June period of the current year.

Regarding other energy-related matters, Singh stated that there are no current plans to provide viability gap funding for Pumped Hydro Storage Projects, and no proposal is being considered to share the coal cess of Rs 400 per tonne with states for the development of pumped storage projects.

On the Unnat Jyoti by Affordable LED for All (UJALA) scheme, the minister noted that substantial energy savings have been achieved through the distribution of energy-efficient LED bulbs and tubelights. The scheme has significantly transformed the LED industry, contributing to energy savings, cost reductions, peak demand avoidance, and CO2 emissions reduction. As of March 31, 2023, a cumulative total of 419 crore LED bulbs and 151 crore LED tubelights have been distributed under the scheme.