Selling of Surplus power from linkage coal

Source: The post on Selling of Surplus power from linkage coal  is based on the article“Surplus power from “linkage coal” can be sold by thermal stations in the market: Power Ministry tells utilities as summer heat intensifies” published in “The Indian Express” on 24th April 2024.

What is the News?

Recently, the Ministry of Power has clarified all power generating companies that coal-based thermal plants can utilize linkage coal to offer surplus power in the power market.

This clarification aims to ensure optimum utilization of generating stations as India prepares for a hotter-than-normal summer, which is expected to drive peak demand to a record 260 GW.

Reasons behind this decision

1. India struggles with the fluctuating output of renewable energy sources. This increases the strain on its stable power generation capacity of thermal plants during peak electricity demands.

2. This is a proactive measure taken by the power ministry which aims to mitigate the risk of power outages during poll season and record-breaking heat waves.

Coal Linkage

Coal linkage means buying coal from mines which are closer to the power plant. Earlier it was compulsory to buy coal from the allocated coal block. But now power plants can buy coal from mines which are closer to the power station. It thus helps in saving money on transportation/logistics.

UPSC Syllabus: Economy