Page 5 - AsiaElec Week 07 2021

AsiaElec COMMENTARY AsiaElec

India’s coal plant load factor (PLF) slid to a
record low level of 53% in 2020, while coal-fired targets are met.
generation fell and coal-fired capacity increased. However, radical reforms to coal policy are
Therefore the current coal fleet is already run- needed, such as a moratorium on building new
ning the risk of turning into loss-making coal power plants, incentivising the closure of
stranded assets. old coal power plants and a moratorium on new
coal mine auctions.
Emissions The key issue is that coal peaking is depend-
Electricity is the biggest driver of India’s carbon ent on wind and solar meeting expectations.
emissions due to its reliance on coal. With 74% New Delhi must become both pro-renewables
of power generating capacity, coal-fired power and anti-coal if the black fuel is to lose dominant
is the source of one-third of the country’s total role in the country’s power sector.
greenhouse gas (GHG) emissions. The government could do such things as
In addition, India is the world’s third largest replacing existing power purchase agreements
emitter of carbon dioxide, accounting for 2.46bn (PPAs) between generators and distribution
tonnes in 2019-2020, according to Carbon Brief, companies with renewables contracts.
or 6.8% of the total global emissions, behind Other barriers to wind and solar growth,
China and the US. such as complex rooftop solar regulations and
However, the country is well placed to rein low investment in battery storage, must also be
in its emissions and to meet its Paris Agreement overcome.
commitments. Other 2030 targets include raising investment
Climate Action Tracker (CAT), a think-tank, in renewables to $20bn per year over the next
said in January that India was on track to meet decade, with the sector opening up to foreign
the Paris Agreement target. private capital.
CAT said that India’s emissions intensity Meanwhile, the government wants to
should drop to 37-39% below 2005 levels by increase the share of non-fossil fuel energy in its
2030, largely spurred by strong investments in total energy mix to 40% by 2030.
solar and wind power. Coal policy is key to meeting these targets,
and coal’s failure to adapt to the challenge of
The next decade COVID-19 means that renewables are better
Looking ahead, Ember calls for India to imple- placed to meet the country’s future power needs
ment effective policies to ensure wind and solar over the next decade. ™

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