Page 12 - AsiaElec Week 23 2021
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AsiaElec                                     NEWS IN BRIEF                                           AsiaElec




       POLICY                              with a total designed annual household   IEEFA: New coal-fired power
                                           waste processing capacity of 51mn tons
       ADB, China Everbright               and expected on-grid power generation of   plants in India will be
                                           approximately 16,912 GWh.
       Environment form Strategic          for Healthy Oceans and Sustainable Blue   economically unviable
                                              In 2019, ADB launched the Action Plan
       Partnership for Ocean               Economies to expand financial and technical   Much of India’s 33 gigawatts (GW) of
                                           assistance for ocean health and marine
                                                                                coal-fired power capacity currently under
       Health in Asia                      economy projects.                    construction and another 29GW in the
                                                                                preconstruction stage will end up stranded,
                                           ADB
       The Asian Development Bank (ADB)                                         according to a new briefing note by the
       and China Everbright Environment                                         Institute for Energy Economics and Financial
       Group Limited (CEEGL) today signed a   COAL-FIRED GENERATION             Analysis (IEEFA).
       memorandum of understanding (MOU) to                                       “Coal-fired power simply cannot
       cooperate on efforts to promote the circular   Delhi government petitions   compete with the ongoing cost reductions
       economy and protect ocean health in Asia.                                of renewables. Solar tariffs in India are now
         Under the agreement, ADB and CEEGL   Supreme court to close 10         below even the fuel costs of running most
       will jointly promote the development of                                  existing coal-fired power plants,” says author
       enhanced solid waste management systems in   TPPs                        Kashish Shah, Research Analyst at IEEFA.
       Asia to encourage public-private partnerships                              “In the last 12 months no new coal-fired
       (PPP) in waste collection, transportation, and   A petition has been filed by the Delhi   power plants have been announced, and
       recycling, and to reduce land-based sources of   government in the Supreme Court seeking   there has been no movement in the 29GW of
       marine debris and related impacts to marine   closure of 10 thermal power plants around   preconstruction capacity.
       life, coastal livelihoods, and human health.  the capital that are using outdated pollution   “This reflects the lack of financing available
         “The ocean ecosystem faces severe   control technology, environment minister   for new coal-fired power projects, and also the
       threats from pollution and climate change,   Gopal Rai said on Thursday.  flattening of electricity demand growth, which
       demanding urgent and sustainable solutions,”   A statement from Rai’s office said these 10   has impacted coal the most.”
       said ADB Private Sector Operations   coal-fired thermal power plants in Punjab,   Despite these headwinds, the Central
       Department Deputy Director General   Haryana and Uttar Pradesh are contributing   Electricity Authority (CEA) still projects India
       Christopher Thieme. “By leveraging ADB   significantly to air pollution in the Delhi-NCR   will reach 267GW of coal-fired capacity by
       and CEEGL’s complementary expertise and   region.                        2030 which would require adding 58GW of
       resources, our partnership will spur advocacy   “We have been writing to the Government   net new capacity additions – or about 6.4GW
       for the circular economy and healthy oceans   of India and requesting their cooperation   annually.
       and disseminate crucial knowledge needed to   regarding pollution from thermal plants.   Our note points out it is “highly
       develop blue economies.”            However, no action has been taken against   improbable” that the CEA’s projections will
         “We look forward to cooperating with   these plants and instead, they are being   materialise given the ongoing financial and
       ADB in reducing marine debris, fostering   allowed to pollute with total disregard for the   operational stress in the thermal power sector,
       blue economy collaboration, and promoting   health of citizens. We hope that the Supreme   and puts the case that India’s coal capacity
       the circular economy in the future, as well   Court will take the necessary steps and direct   requirements should be urgently revised.
       as taking this opportunity to improve the   closure of these plants on an urgent basis,” Rai   “Any projections for India’s future
       company’s strategic vision for business   said.                          generation mix should take into account
       development,” said CEEGL Chairman of   A statement issued by his office said the   that new coal-fired power plants are likely to
       the Board Wang Tianyi. “Meanwhile, the   timeline given by the Ministry of Power to   become stranded assets,” says Shah.
       company will take the reduction of pollution   these plants to comply with emission norms   “The new capacity would only be
       and carbon intensity in the ocean as a starting   were revised to December 2019 as against the   economically viable if it replaced end-of-
       point to better support the People’s Republic   earlier timeline of 2018. “However, the Central  life, polluting power plants with outdated
       of China’s (PRC) pledge to achieve carbon   Pollution Control Board (CPCB) arbitrarily   combustion technology and locations remote
       emissions peak and carbon neutrality.”  extended the deadline to 2022. Further,   to coal mines.
         The cooperation will focus on raising   according to the new notification, non-  “Even then, there would need to be
       awareness on the critical role of solid waste   compliance by these power plants will not lead  sufficient coal plant flexibility to deliver power
       management to ensure ocean health and   to closure of polluting units but they would   into periods of peak demand, and the time-of-
       will document a case study of marine debris   continue to pollute subject to payment of a   day pricing would need to be high enough to
       reduction through relevant projects. ADB and   mere penalty amount,” the statement added.  justify the low over the day utilisation rates.”
       CEEGL will also collaborate to enhance PPP   It also said that the Delhi government, in   Shah adds that without material growth
       project preparation templates, to promote   representations to the power ministry and   in electricity demand, installing additional
       PPPs in solid waste management in ADB’s   the CPCB in October 2020, had sought the   inflexible high emissions baseload capacity
       developing member countries.        closure of these non-compliant power plants   will increase the financial distress of state-
         CEEGL is the first one-stop integrated   citing risk to the health of citizens due to   owned distribution companies (discoms)
       environmental solution provider in the PRC   “excessive pollution” caused by them.  by adding to their burden of paying fixed
       with a business presence in more than 200                                capacity charges to thermal power plants that
       locations across the PRC as well as overseas                             are used only sparingly.
       markets such as Viet Nam, Germany, and
       Poland. At the end of 2020, CEEGL secured   COAL-FIRED GENERATION
       458 environmental protection projects,
       including 161 waste-to-energy projects                                   WIND



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