Page 10 - AsiaElec Week 22 2022

AsiaElec COAL AsiaElec

India proposes cutting

coal power output by 2025

INDIA INDIA plans to cut generating output from a back plans to cut thermal coal imports to zero.
minimum of 81 coal-fired power plants by 2025 The measures are being taken as India faces
in an effort to replace thermal generation with record-high temperatures. Temperatures in the
cheaper renewables. 50s over the last week in India and Pakistan, with
Based on trade data released by Refinitiv, peaks of up to 65°C, have broken records, push-
China imported a total of 4.42mn tonnes of ing up demand for electricity and air condition-
Russian coal oveThe Indian power ministry said ing, causing water shortages in agriculture and
that the plan aimed to expand green energy and threatening future food supply constraints.
to cut costs, the ministry said in a letter sent to “The thermal power plants [TPPs] in future
energy officials in state government, Reuters shall operate up to the technical minimum to
reported. accommodate cheaper renewable energy when
The country is currently using high-priced it is available,” the ministry said in the letter.
coal to meet soaring power demand during the An increase in peak power consumption dur-
current heat wave. This has prompted the gov- ing the night when solar power is not available
ernment to look at renewables as a cost-cutting has made phasing out coal-fired generation a big
alternative in the medium term. challenge.
However, there are no plans to close com- The addition of alternative sources such as
pletely the country’s 173 coal-fired plants. nuclear and hydro power have also been slow.
India expects the plan to reduce power gen- India is the world’s second largest consumer,
eration by 58bn kWh from the 81 utility com- producer and importer of coal, and the fuel
panies to save 34.7mn tonnes of coal and cut accounts for nearly 75% of annual electricity
carbon emissions by 60.2mn tonnes, the letter generation.
said. The world’s third-largest greenhouse gas
The decision comes as international coal (GHG) emitter is currently 37% short of its 2022
prices have risen and the government has put green energy target of 175 GW.
pressure on coal importers to buy in more coal India’s current power crisis could have been
in a bid to meet domestic demand for electricity. averted if its target to install 175 GW in renew-
In May, three India state governments said able energy had been on track, think-tank Cli-
they will buy in 10.5mn tonnes in the near future mate Risk Horizons said.
in a bid to combat power cuts, potentially tight- “The additional generation from solar and
ening global coal markets and pushing up prices. wind ... would have allowed power plants to
The Indian government used powers under conserve their dwindling coal stocks for evening
the Electricity Act to require all power plants peak periods,” Climate Risk Horizons said.
reliant on imported coal to run at full capacity The power ministry’s plan to reduce coal-
until October 31 in a bid to boost power gener- fired generation when renewable sources are
ation capacity. available could also ease pressure on logistics.
India faced a crippling power crisis in April, India’s power crisis has been made worse by a
when a rapid surge in power demand led to a shortage of trains to move coal.™
scramble for coal, forcing the country to roll

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