Hindu Editorial Analysis : 27-May-2023
Coal is a crucial fossil fuel in India, accounting for 55% of the country’s energy needs. It has played a significant role in shaping India’s industrial heritage. The nation possesses substantial reserves of hard coal, primarily located in the eastern and south-central regions, spread across 27 major coalfields. Despite having the world’s fourth-largest coal reserves, India remains the second-largest coal importer. Coal-based power plants currently meet around three-fourths of the country’s electricity demand.
Coal-Based Power Plants: Overview and Concerns
Coal-fired power stations, also known as coal power plants, are thermal power stations that utilize coal to generate electricity. These power plants contribute to about one-third of global electricity generation, but they are also associated with adverse effects such as air pollution, leading to numerous illnesses and premature deaths.
Contemplating the Ban on New Coal-Based Power Stations: Power Demand Mismatch
The government’s potential ban on establishing new coal-based power stations raises concerns regarding meeting future power demands. While existing power plants under construction will be allowed to continue, additional capacity of approximately 16,000 MW of coal-based power generation will be required to meet the power demand projected for 2029-30. This capacity would supplement the 27,000 MW already under construction. The Central Electricity Authority’s (CEA) recently released report, “Optimal Generation Capacity Mix,” highlights the need for this additional capacity.
Mismatched Reports and Perceptions
The discrepancy between different reports further complicates the situation. The CEA has published two versions of their report, with the first in January 2020 and the second in April 2023. The power demand projections for 2029-30 in the second report are based on the 20th Electric Power Survey (EPS), while the first report relied on estimates from the 19th EPS. The 19th EPS projected a peak demand of 340 GW in 2029-30, while the 20th EPS suggests a figure of 334 GW. Similarly, the energy demand projections for the 19th and 20th EPS are 2,400 BUs and 2,313 BUs, respectively.
Historically, the CEA’s power demand projections have been known to be exaggerated. Therefore, the government may believe that the actual power demand in 2029-30 could be even lower than the projections in the 20th EPS. This perception could influence their decision-making process regarding the ban on new coal-based power stations.
Changing Load Curve and Retirement of Units
The changing shape of the load curve is another factor influencing the government’s perspective. Traditionally, India experienced two peak power demand periods in a day, with the evening peak surpassing the morning peak. However, in recent years, the evening peak has shifted to around 4 pm, rather than 7 pm.
This shift presents an opportunity to meet the evening peak demand with solar power, reducing the reliance on coal-based capacity. Furthermore, indications suggest that the peak time may further advance to approximately 2 pm, potentially leading to a further decrease in the need for coal-based capacity.
Additionally, the revised CEA report mentions a reduction in the required capacity for coal-based stations in 2029-30. This decrease is attributed to the reasons mentioned above, as well as a significant policy change concerning the retirement of power plant units after 25 years of operation. The latest version of the report states that about 2,121 MW of coal-based capacity would be retired by 2030, compared to the earlier estimate of approximately 25,000 MW.
Why In News
The government is actively considering a ban on establishing new coal-based power stations as part of their commitment to transitioning to cleaner energy sources. This decision comes in response to growing concerns about the environmental impact and health risks associated with coal-fired plants, signaling a crucial step towards a more sustainable and greener future.
MCQs about Examining the Ban on New Coal-Based Power Stations in India
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What is the primary reason for the government’s contemplation of a ban on new coal-based power stations?
A. Environmental concerns
B. Insufficient coal reserves
C. Decreasing power demand
D. Economic considerations
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What is one of the factors influencing the government’s perception that the additional coal-based capacity may not be required?
A. Changing shape of the load curve
B. Increase in coal reserves
C. Higher power demand projections
D. Lack of alternative energy sources
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What is one of the reasons behind the government’s consideration of allowing the continuation of coal-based power plants already under construction despite the ban on new establishments?
A. Increasing coal reserves
B. Lower air pollution levels
C. Fulfilling contractual obligations
D. Shift towards renewable energy sources
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