NEW DELHI: Despite ambitious net-zero targets and an ongoing energy transition, India’s coal production continues to meet its growing electricity demand. The country recorded a multifold rise in its thermal capacity addition so far in FY24 (April-February) to 5.75 GW compared to just 450 MW a year ago, according to data from the Central Electricity Authority (CEA).
The executive summary for February 2024 released by the CEA showed that 2.78 GW of thermal power capacity was installed in February.
This growth is in line with the projections of record power demand in summers. The CEA estimates peak power demand at 260 GW in FY25, well above the 243 GW recorded in FY24. Coal shortage and near crisis in FY22 has led the government to increase the number of thermal power plants despite its ambitious renewable-energy plans to curb carbon emissions.
The baseload for India’s power demand is still coal-fired power plants. Baseload refers to the minimum amount of power the electrical grid requires at any given time. Renewable energy such as solar or wind power usually cannot ensure stable supplies and require utility-scale batteries to store energy, which are not yet adequately available in India.
Several thermal plants were inaugurated in February, just before the model code of conduct for the upcoming general elections came into force. At the end of that month, India’s coal-based power capacity stood at 210.96 GW, the report said. Coal production and supply to power plants have also improved. Currently, power plants have enough stock for around 17 days.
In a recent interview to Mint, Amrit Lal Meena, secretary at the union coal ministry said coal stocks across power plants would be adequate for the upcoming summer. He also said India’s total coal stock could touch 155 million by the end of the fiscal year, from 125 million tonnes in the previous year.
Addition of renewable energy capacity, however, has slowed so far this fiscal year. As of February, a total of 11.47 GW of renewable energy capacity, including large hydro projects, had been added, against 12.34 GW in the corresponding period of the previous fiscal year.
The government plans to bid out 50 GW of renewable capacity by FY28 to achieve the targeted installed non-fossil capacity of 500 GW by 2030. A report released by ICRA in February said that as of December, 19 GW renewable capacity has been bid out by the government.
According to the monthly CEA report, India currently has an installed renewable energy capacity of 183.49 GW, of which 46.92 GW is from large hydro plants.