Govt plans to stop building new coal-fired power plants

Source: The post is based on the article “Govt plans to stop building new coal-fired power plants” published in Livemint on 5th May 2023

What is the News?

The Government of India plans to stop building new coal-fired power plants apart from those already in the pipeline by removing a key clause from the final draft of its National Electricity Policy(NEP).

What is the significance of India’s decision to stop building new coal-fired power plants?

As of January 2023, only 20 countries in the world have more than one coal project planned. 

India and China are the only developing countries that contribute to 80 per cent of all active coal projects. 

But India’s move to stop constructing new coal-fired power plants will make China the only major economy in the world to construct coal-fired power plants.

What is India’s stand on coal projects?

China and India have together been lobbying for freedom for countries to choose a roadmap to cut emissions.

India, whose proposed coal power capacity is the highest after China, had repeatedly refused to set a timeline to phase out coal, citing low per-capita emissions, surging renewable energy capacity and demand for inexpensive fuel sources.

What are the other proposals made under the Draft National Electricity Policy?

The draft also proposes delaying the retirement of old coal-fired plants until energy storage for renewable power becomes financially viable.

Until now, old coal-fired power plants with a cumulative capacity of 13 GW have been earmarked for functioning post-retirement deadlines to meet high power demand.