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Energy

Thermal power is pushed to a corner. What got it here? Overzealous forecasts and tepid demand

After gas-based power plants entailing INR1 lakh crore investment, coal-fired power plants with a combined capacity of 50,000MW could become stranded. Power-sector insiders say illogical forecasts by the CEA have resulted in overcapacity. Adding to the woes are the lack of assured fuel supply and agreements to sell power, besides the government’s focus on solar power.
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9 Dec 2019 8 Mins Read 2 comments
Workers watch as a defunct 118 metre cooling tower, one of India's tallest, is demolished near Gandhinagar in Gujarat. Getty Images
Workers watch as a defunct 118 metre cooling tower, one of India's tallest, is demolished near Gandhinagar in Gujarat.
As the Indian economy struggles to come out of a low-growth phase, the talons of slowdown are gradually clasping the country’s electricity sector. Coal-based power plants with a combined capacity of 50,000MW are facing redundancy, thanks to a combination of factors including “unrealistic forecasting” by the Central Electricity Authority (CEA), tepid demand, and the government’s emphasis on renewable
have to make sure the PLF of the coal-fired power plants improves much above 50%, that they get adequate fuel supply to run, and enough money to service their loans. Till the time renewable energy infrastructure attains scale and becomes an alternative to thermal power, coal-fired power plants need to be protected. ( Graphics by Mohammad Arshad)
As the Indian economy struggles to come out of a low-growth phase, the talons of slowdown are gradually clasping the country’s electricity sector. Coal-based power plants with a combined capacity of 50,000MW are facing redundancy, thanks to a combination of factors including “unrealistic forecasting” by the Central Electricity Authority (CEA), tepid demand, and the government’s emphasis on renewable have to make sure the PLF of the coal-fired power plants improves much above 50%, that they get adequate fuel supply to run, and enough money to service their loans. Till the time renewable energy infrastructure attains scale and becomes an alternative to thermal power, coal-fired power plants need to be protected. ( Graphics by Mohammad Arshad)

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