India may need additional coal-based power to meet rising electricity demand: CEA Chairperson

Central Electricity Authority (CEA) chairperson Ghanshyam Prasad. (Source: Instagram)

India may need to add 105-150 gigawatts (GW) of coal-based power capacity by 2035, significantly more than the 97 GW currently planned, to meet rising electricity demand and ensure a stable power supply, Ghanshyam Prasad, chairperson of the country’s top power planner Central Electricity Authority (CEA), said on Tuesday.

Speaking at the 20th India Energy Summit organised by the Indian Chamber of Commerce, Prasad stressed the need to maintain adequate baseload capacity to address the challenges posed by the intermittency of renewable energy sources. Solar and wind power generation fluctuates depending on weather conditions, while the limited availability of energy storage restricts the ability to use surplus renewable power to meet evening and night-time demand.

Prasad’s remarks signal the need for a reassessment of India’s planned coal-based capacity additions, even as the country continues to expand its renewable energy capacity.

The country has witnessed an unusual surge in electricity demand this year, putting additional pressure on coal-based power plants amid deficient monsoon rainfall and lower hydropower generation.

Coal-based sources generated nearly 10% higher electricity between April and August compared to the same period last year.

Between April and August, coal-based sources generated 579,869.38 million (MU) against 527,542.87 MU in the corresponding period last year. Generation from coal-based sources was also the highest recorded for the April-August period in the past three years.

In contrast, hydropower generation fell by over 11% to 75,304.58 MU during April-August period this year, from 84,767.77 MU in the corresponding period last year.

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Stress on coal-based plants are also reflected in depleting coal stocks in these plants. Fuel stocks at domestic coal-based power plants have declined by around 66% by the end of September this year, compared with a decline of around 23% during the same period last year, when stocks fell from 55.2 million tonnes at the beginning of April to 42.6 million tonnes by the end of September.

Prasad said electricity demand was running 45-50 GW higher than last year, adding to concerns over coal supplies and the availability of power plants for scheduled maintenance.

“The stock is depleting almost every day. We need to put these plants under maintenance as well. We are not finding time to put them on the maintenance cycle,” he said, highlighting the challenges facing the power sector.

The situation, he said, underscored the need for a judicious mix of energy sources rather than relying on one or two resources.

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“We need to have a good amount of baseload stations,” Prasad said.

“It was good that 4 to 5 years back we reverted our policy and said that we need a huge amount of and huge addition of coal-based generation,” he added.

The emphasis on additional coal capacity marks a shift from the position outlined in the National Electricity Plan in 2018, which said India would not require any new coal-based capacity beyond projects already planned.

However, Prasad said a greater focus on baseload power did not mean renewable energy would take a back seat. The country would continue adding around 50 GW of renewable energy capacity annually, with nuclear power and pumped-storage hydropower also contributing to the electricity mix, he said.

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He also flagged the challenges of integrating large volumes of renewable energy into the grid, particularly in Rajasthan and Gujarat, where the high concentration of renewable energy projects has led to grid trippings — the automatic disconnection of power generation units or transmission lines due to faults or abnormal operating conditions.