India asks utilities to not retire coal-fired power plants till 2030

By Sudarshan Varadhan

SINGAPORE, Jan 30 (Reuters) – India has asked utilities
to not retire coal-fired power plants till 2030 due to a surge
in electricity demand, according to a federal power ministry
notice reviewed by Reuters, just over two years after committing
to eventually phase down use of the fuel.

The energy-hungry nation said last May it plans to reduce
power generation from least 81 coal-fired plants over the next
four years, but the proposal did not involve shutting down any
of its 179 coal power plants. India has not set a formal
timeline for phasing down coal use.

“It is advised to all power utilities not to retire any
thermal (power generation) units till 2030 and ensure
availability of units after carrying out renovation and
modernisation activities if required,” the Central Electricity
Authority (CEA) said in a notice dated Jan. 20 sent to officials
in the federal power ministry.

The CEA, which acts as an advisor to the ministry, cited a
December meeting where the federal power minister had asked that
ageing thermal power plants not be retired, and to instead
increase the lifetime of such units “considering (the) expected
demand scenario”.

The federal power ministry did not immediately respond to
emailed requests for comment.

India, the world’s second largest-consumer, producer and
importer of coal, fell short of its 2022 renewable energy
addition target by nearly a third. Coal accounts for nearly
three-quarters of annual electricity generation.

Power demand in India has surged in the recent months due to
extreme weather, rising household use or electricity as more
companies allowing employees to work from home, and a pickup in
industrial activity after easing of coronavirus-related
restrictions.

Peak power demand met – a measure of maximum power supplied
during the day – rose to a record of as much as 210.6 GW on Jan.
18, 1.7% surpassing the previous peak of 207.1 GW at the height
of an intense heatwave last April that caused India’s worst
power crisis in six and a half years.

“Peak power demand has already risen 5% this year. If it
increased by another 3-4%, we could be staring at another
crisis,” a senior official at a utility in a southern Indian
state said.

“There is no question of retiring old coal units,” the
official said, speaking on condition of anonymity because he is
not authorised to speak to the media.
(Reporting by Sudarshan Varadhan; Editing by Kenneth Maxwell)