India will avoid building new coal-fired power plants in the next five years as it aims to increase its use of renewable energy to generate electricity, according to the Central Authority of India’s updated National Electricity Plan. ‘Electricity of the country published on Wednesday.
The plan is seen as a step towards India’s goal of increasing the share of renewable energy in its energy mix by 2030, increasing its non-fossil fuel energy capacity to 500 gigawatts by 2030 and achieving zero net emissions by 2070. The targets were announced by Indian Prime Minister Shri Narendra Modi at COP26 in 2021.
India overtook China as the world’s most populous country this year and is the third-largest emitter of carbon dioxide after China and the US, according to the World Bank.
The electricity plan, released every five years, outlines India’s strategy and priorities for power generation. Traditionally dependent on coal, India’s most recent plan now proposes building 8,600 megawatts of battery storage systems. The plan said that no new gas plant investments are being considered.
According to the plan, although gas-based power generation has the advantage of rapid ramp-up capability, and modern combined-cycle gas turbines have a higher efficiency of 55% in comparison with coal-fired plants at 40%, India “faces losses”. from gas stations.” This is because domestic gas supply was “insufficient” and the price of imported liquefied natural gas was “very high,” according to the document. “Domestic gas production and supply has not been keeping pace with the growing demand for natural gas in the country, including the power sector,” the document says, as domestic natural gas is prioritized for fertilizer production as the country has an agrarian economy.
With the gradual introduction of renewables into India’s energy mix, large-scale renewable capacity is likely to pose challenges for power generation, the paper said. One of the challenges is supporting the grid, especially during peak hours when solar power drops and load increases. The paper said that “gas-based power plants can play a vital role in grid stability and provide the much-needed balancing power to integrate renewable energy generation into the grid, especially given account for its rapid ability to climb and descend.”
According to the paper, the development of the domestic natural gas industry began in the 1960s with the discovery of gas fields in Assam and Gujarat, and gained importance after the discovery of the southern basin fields by the state-owned Oil and Natural Gas Corporation (ONGC). in 1970. Later, private companies were allowed to enter exploration through joint ventures with domestic oil companies, and finally 100% foreign participation in exploration was allowed.
India has seen electricity demand grow at a compound annual growth rate (CAGR) of around 4.1 percent in the last ten years, and electricity demand is projected to grow at an annual growth rate of compounded growth (CAGR) of 7.18 percent over the next five years. The country’s installed power plant capacity increased to 410,339 MW by 2022. According to the paper, peak power demand will reach 277,201 MW in 2026-27 and 366,393 MW in 2031-32.
According to India’s Ministry of Power, coal and lignite account for 49.3% and 1.6% of the country’s generation capacity. The agency’s latest figures put gas power generation at six percent, while non-fossil fuel generation, which includes hydro, wind, solar and other renewables, was at 41 .4 percent.
ONGC recently said it aims to invest $12.1 billion by 2030 to balance its fossil fuel-heavy energy portfolio with green projects.
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