TFP Bureau, New Delhi, August 8, 2024: In a strategic move to ensure energy security amid rising demand, the Central Electricity Authority (CEA) has advised all thermal power utilities not to retire or repurpose their coal-based power stations before 2030. The advisory, issued on January 20, 2023, and July 7, 2023, urges utilities to carry out necessary Renovation and Modernization (R&M) activities to keep thermal units operational, considering the expected future energy demands.
The CEA’s guidance comes as the government acknowledges the crucial role coal-fired power plants continue to play in India’s energy mix. Despite the growing emphasis on renewable energy sources, coal remains a key contributor to providing affordable and reliable electricity to consumers across the nation. While the share of renewables in India’s primary energy mix is set to rise, coal’s contribution, though decreasing as a percentage, is expected to increase in absolute terms.
Under the Electricity Act, 2003, electricity generation is a delicensed activity, and decisions regarding the phasing out or retirement of power units are made by the respective power-generating utilities or companies based on their techno-economic assessments, energy demand projections, and environmental considerations.
As India’s economy expands and the demand for affordable electricity grows, the coal sector is expected to continue playing a significant role. While some coal mines may be phased out due to depleted reserves, new coal mines are being operationalized to meet the rising energy needs. These new mines not only contribute to the nation’s energy security but also create employment opportunities, both directly and indirectly, within the coal sector.
This information was provided by the Minister of State for Power, Shri Shripad Yesso Naik, in a written response to the Lok Sabha today.
