India could build new coal-fired power plants because they generate the cheapest energy, according to a draft electricity policy document seen by Reuters, despite growing calls from environmentalists to discourage the use of coal.
The contribution of coal to electricity production in India decreased for the second consecutive year in 2020, marking a deviation from decades of coal energy growth. However, fuel accounts for almost three quarters of India’s annual energy production. Read more
Environmental activists have long rallied against India, adding a new coal-based capacity. Solar and wind energy prices are falling to record levels, which would help the world’s third largest emitter of greenhouse gases to reduce emissions.
U.S. Presidency Special Envoy for Climate Affairs John Kerry said this month that India is “doing the climate work, pushing the curve,” as it begins talks with government leaders to cut carbon emissions faster to slow down. 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 add new coal-based capacity, although it recommended stricter technological standards to reduces pollution.
“While India is committed to adding more capacity through non-fossil generation sources, it may be necessary to add coal-based production capacity to the country as it continues to be the cheapest source of generation,” it reads. in the NEP project.
All future coal-fired power plants should only have less so-called “ultra-critical technologies” that are less polluting “or other more efficient technologies”, he added.
NTPC Ltd (NTPC.NS), India’s largest electricity producer, said in September it would not buy land for new coal-based projects. Private and state-run companies across the country have not invested in new coal-fired power plants for years, saying they are not economically viable.
A source with direct knowledge said that a government group made up of various energy experts and officials will discuss the project and could make changes before seeking cabinet approval.
India’s government did not immediately respond to a request for comment on Sunday.
The draft document also proposed trade in renewable energy in everyday markets, creating separate tariffs for electric vehicle charging stations and privatizing electricity distribution companies.
ALTERNATE POWER SOURCES
NEP 2021 is India’s first attempt to revise its electricity policy in 2005, when the country produced negligible renewable energy.
Experts say the gradual introduction 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 lead to disruptions.
Although it suggests the flexible use of coal and natural gas energy to ensure grid stability in the coming years, the draft policy lists the promotion of clean energy as the main objective.
The draft policy suggested accelerating the adoption of “cost-effective” pumped hydraulic storage to support the electricity grid, adding that so far only 4.8 gigawatts (GW) of a potential 96.5 GW of pumped storage capacity have been developed.
The policy also recommends compensating natural gas-fired power plants for low-efficiency operation to ensure network stability and greater wear and tear due to generation fluctuations.
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