On Increasing Coal-based Power Generation

Source: This post on Increasing Coal-based Power Generation has been created based on the article “Why India’s green push needs balancing, why COP28 coal breather is important” published in “Indian Express” on 16^th December 2023.

UPSC Syllabus Topic: GS Paper 3 Environment – Conservation, environmental pollution and degradation.

News: The article discusses India’s plans of increasing coal-based power generation. It also highlights the issues with renewable sources of energy, and why coal-based power is the way forward for India.

A detailed article on UNFCCC COP28 can be read here.

At the recently concluded COP28, a strong pushback was recorded by India, China and some other countries to a proposal advocating that no new coal-fired power plants can be commissioned without an in-built carbon capture and storage facility. This finally led to the omission of the clause from the final climate deal that was agreed upon.

This proposal would have put India’s future coal-based power generation at risk, given the added costs of adding carbon capture and storage facilities.

What are India’s plans of increasing coal-based power generation?

The Union Power Ministry recently decided to increase India’s coal-powered generation capacity by at least 80 GW by 2031-32.

It shows India’s plans to revert to coal for fulfilling the increasing baseload capacity (the minimum amount of power or electricity generation required to meet the constant energy demand of a region or system).

What is the current state of India’s renewable-based power generation?

India is the world’s 3^rd largest producer of renewable energy.

More than 40% of installed electricity capacity comes from non-fossil fuel sources (including large hydropower plants).

Solar and wind energy forms more than 30% of the total installed capacity.

This has resulted in a 24% reduction in Emission Intensity (ratio of total greenhouse gas emissions to the GDP) — between 2005 and 2016.

India’s Energy Mix as on October 31, 2023. Source: Central Electricity Authority.

What are the issues with renewable sources of energy?

1. Intermittency: Renewable electricity (solar and wind) is generated only when the sun shines or when the wind blows, which is not always in sync with the demand cycle. This creates the problem of intermittency (or inconsistency/variability in power supply).
2. Lack of Energy Storage: Without energy storage facilities to counter intermittency, renewable power poses problems for grid managers. Energy storage technology is also expensive currently.
3. High Cost:
   a. Cost of Power Generation: According to an expert, the idea that renewables would achieve grid-parity (cost of generating electricity from renewable sources equaling or becoming lower than the cost of electricity generated from traditional sources, typically fossil fuels) is proving to be incorrect.
   b. Cost of Maintaining Thermal Units: To counter the problem of intermittency, power utilities are forced to keep old thermal units operational on standby, which results in high fixed costs.
4. Rigid Power Purchase Agreements (PPAs): Solar Energy Corporation of India (SECI) Ltd, the state-owned company conducting solar auctions, has come into rigid PPAs with green developers, with no scope for innovation.
   Note: A PPA is a long-term contract between an electricity generator and a purchaser to purchase power under some pre-determined conditions.

According to the author, until these issues are resolved, increasing thermal power is the way forward.

Question for practice:

India’s energy transition to fulfill its climate-change commitments faces a challenge due to various issues with renewable energy. Analyse.