India could build new coal-fired power stations as it generates the cheapest power, according to a draft electricity policy document seen by Reuters, despite increasing calls from environmentalists to deter the use of coal.
Coal’s contribution to India’s electricity generation declined for the second consecutive year in 2020, a departure from decades of growth in coal power. Yet fuel is almost three-quarters of India’s annual power output. read more
Environmental activists have long rallied against India adding new capacity for coal. The price of solar and wind energy is falling to record lows, which will help reduce the world’s third largest greenhouse gas emissions.
U.S. special climate president John Kerry said this month that India is doing the climate work and pushing the curve, while starting talks with government leaders to reduce carbon emissions faster to slow global warming.
But a February 28-page draft of the National Electricity Policy (NEP) 2021 – which has not been made public – showed that India could potentially add new coal power, although it recommends stricter technological standards to reduce pollution.
“Although India is committed to adding more capacity through non-fossil sources of generation, it may still be necessary to add coal-based generation in the country as it is still the cheapest generational source,” reads the concept of the NEP .
All future coal-based plants should only use so-called ‘ultra super critical’ less polluting technologies ‘or other more efficient technologies’, he added.
The state-owned NTPC Ltd (NTPC.NS), the leading electricity producer in India, said in September it was not going to acquire land for new coal projects. Private businesses and many people run by countries across the country have not invested in new coal plants for years, saying it is not economically viable.
A source with direct knowledge said that a government panel of various experts and officials in the power sector will discuss the concept and make changes before the cabinet is approved.
India’s Ministry of Power on Sunday did not immediately respond to a request for comment.
The draft document also proposed renewable energy trading in day markets, creating separate tariffs for charging stations for electric vehicles and the distribution of electricity businesses.
CHANGE POWER SOURCES
The NEP 2021 is India’s first attempt to revise its electricity policy introduced in 2005, when the country produced negligible renewable energy.
Experts believe the phasing in of renewable energy sources and the phasing out of conventional sources such as coal and natural gas could lead to instability in the electricity grid, which could potentially cause a blackout.
While the flexible use of coal and natural gas power is proposed to ensure the stability of the network in the coming years, the main objective for the promotion of clean power is indicated.
The policy proposal proposes that the adoption of ‘cost-effective’ hydro-storage with pumps to support the electricity network be accelerated and that only 4.8 gigawatts (GW) of a potential 96.5 GW pump storage capacity be developed so far. is.
The policy also recommends compensating natural gas plants for less efficient operation to ensure the stability of the network and to experience higher wear and tear due to fluctuations in generation.
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