As India strives towards a more sustainable future, it is expected to build a significant 14.56GW of coal-based power this fiscal year, highlighting the countrys need for diversified energy sources to meet its expanding need for energy as the worlds fastest-growing major economy. Whats the governments strategyIndividuals with knowledge of the situation have stated that this is part of a larger plan to increase coal-based capacity by about 27GW, with a cost of approximately ₹1.89 trillion, which will be executed by power generation companies operated by the state and central governments. This development occurs in the backdrop of next years general elections, with the government committing to providing all citizens with reliable, high-quality, and inexpensive power 24 hours a day.As an answer to a question, Union Power Secretary Alok Kumar stated, “India is fully achieving its energy transition objectives and will continue to do so.” He continued that the government has launched a bidding strategy to add 50 GW of renewable energy capacity per year for the next five years, intending to reach 500 GW by 2030. Also, he emphasised the necessity for energy security to enable the countrys development and prosperity.Is coal an answer to increasing power demandIndias power demand is increasing at a rate of about 10% per year, and coal demand is anticipated to reach its highest point between 2030 and 2035. Renewable energy sources are not always accessible and are insufficient to meet such high demand, requiring the usage of coal power to keep the grid stable. This suggests that, despite having the worlds fourth-largest coal reserves and being the second-largest coal producer, fossil fuels will continue to be a key component of Indias energy mix for many years to come.This fiscal year, public sector organisations such as NTPC, NLC, SJVNL, and THDC India, as well as state government-run enterprises such as TANGEDCO, UPRVUNL, APGENCO, TSGENCO, MAHAGENCO, and WBPDCL, have added 14.56GW of coal-based power generation capacity. According to a government official, this capacity expansion is critical to meeting the countrys expanding electricity needs and providing 24×7 quality power to all.The countrys highest demand for electric power is predicted to reach 229GW in April, with a 6.5% YoY increase in FY24 and FY25. As a result, economists expect that India will continue to rely on coal-based power, with coal power capacity accounting for more than half of Indias power generation capacity.India Ratings and Research (Ind-Ra) maintains a neutral outlook for the power sector in FY24, forecasting that the thermal power plants overall plant load factor (PLF) would improve further and approach 65% throughout the year. This is owing to persistent growth in power consumption, continued reliance on coal-based power generation, and the lack of significant capacity additions in sectors other than renewables. To fulfil rising energy demand, Coal India Ltd, Indias largest coal miner, has been assigned a supply target of 610 mt to the power sector in FY24, which is 24 mt more than it was delivered in FY23.
