India’s Coal Power Capacity Surpasses Expectations, Prompting Concerns over Financial and Environmental Implications
India has exceeded predictions for its coal power capacity, resulting in potential financial and environmental consequences, according to a recent analysis conducted by Global Energy Monitor (GEM) and the Centre for Research on Energy and Clean Air (CREA). The study reveals that nearly 11.5 gigawatts (GW) of coal power capacity moved forward in various approval stages during the first five months of this year.
The study indicates that India is actively developing 65.3 GW of coal power capacity, with 30.4 GW already under construction and an additional 35 GW in various pre-construction phases. Surprisingly, the country permitted coal projects totaling around 3.9 GW, while 7.6 GW received Terms of Reference, bringing them one step closer to obtaining permits.
Flora Champenois, a research analyst at GEM, remarked on the shift in India’s energy transition pattern, saying, India’s coal approval spree in 2023 marks a change in the country’s energy transition pattern. Last year, it did not approve any new coal power plants for the grid, which was in line with the global trend of moving away from the dirty, expensive, and outdated energy.
The analysis of India’s National Electricity Policy (NEP 2023) reveals that the country’s current coal power capacity plans exceed estimated requirements for both 2027 and 2032. The study specifically highlights that over 8 GW of non-captive coal-fired power plant capacity currently under construction is unnecessary. Furthermore, all 34.9 GW of pre-construction capacity is deemed redundant. According to the 10-year coal projections in the NEP, there is no need for any new projects to enter the pre-construction pipeline.
Sunil Dahiya from CREA emphasized the detrimental effects of over-projected electricity demand, as it can result in billions of dollars’ worth of coal power plants becoming non-performing assets. Dahiya warns that the continued push for more coal power proposals will not only worsen India’s financial standing but also contribute to climate change, air pollution, and health disasters in the future. He urges authorities to take prompt and efficient action to avert these potential disasters.
Researchers also suggest that India has the opportunity to accelerate the global transition from coal to clean energy at the upcoming G20 leaders’ summit in New Delhi.
In summary, India’s coal power capacity has exceeded initial projections, raising concerns over potential financial losses and environmental consequences. The development of unnecessary coal projects, coupled with over-projected electricity demand, could lead to stranded assets and severe long-term implications. It is crucial for India to consider alternative, cleaner energy sources and ensure the country’s energy transition aligns with global efforts to combat climate change and promote sustainability.
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