India to add 80GW of coal-fired capacity by 2031-32Singapore, 23 November (Argus) — India’s federal government plans to add about 80GW of thermal power generation capacity by 2031-32 to meet an anticipated increase in power demand, in a boost for future coal consumption.
The country’s power demand has increased at an unprecedented rate because of its rapid economic growth. “India needs 24×7 power supply for growth and we are not going to compromise on its availability,” India’s power ministry said on 22 November. “This power cannot be achieved by renewable energy sources alone. Since nuclear capacity cannot be added at a rapid pace, we need to add coal-based thermal capacity.”
India has 27GW of thermal power capacity under construction and had planned to add another 25GW, the ministry said. But it has now decided to start work on at least 55-60GW of additional capacity.
The ministry urged the industry to plan for capacity additions over the next 5-7 years. “Demand will continue to grow at a rapid pace. Prices in exchange are going to remain high. Those who add capacity will gain and those who don’t will miss out on a golden opportunity,” the ministry told power companies.
The government’s focus on thermal power expansion comes as most private-sector utilities have largely stopped developing new coal-fired generation projects. Tata Power and JSW Energy have shifted from developing new thermal generation capacity to focusing entirely on renewables. The bulk of India’s new coal-fired capacity is likely to be in the public sector, led by state-controlled utility NTPC.
India had 206.82GW of installed coal-fired capacity as of 31 October, while total thermal capacity including lignite, gas and diesel was 239GW, according to the power ministry. The country also had 179GW of renewable generation capacity and 7.48GW of nuclear power capacity as of 31 October.
Rising coal-fired generation
The country’s coal-fired power generation, which meets the bulk of India’s electricity requirements, rose to 111.13TWh in October from 83.59TWh a year earlier, according to data from the Central Electricity Authority. October’s coal-fired generation was also higher from 103.34TWh in September.
India plans to increase coal production to 1.4bn t/yr by 2027, up from the projected output of 1bn t in the April 2023-March 2024 fiscal year, to meet anticipated increased utility demand. Delhi has also set an ambitious target to raise coal output further to 1.577bn t by 2030, India’s coal ministry said on 13 November. It was unspecified if the target is set for the calendar or fiscal year.
India’s October coal imports rose steeply compared with a year earlier, supported by strong aggregate power sector coal burn and an increasing share of imported coal-fired generation in the power mix.
Thermal coal receipts in October were up by 7.9mn t from the previous year to 20.11mn t, the highest since June 2022, according to shipbroker Interocean data. The steep increase took year-to-date imports above the equivalent 2022 figure for the first time since June. January-October imports totalled 138.96mn t, up from 136.91mn t a year earlier. India imported 158.29mn t of thermal coal over the whole of 2022.
By Ajay Modi
