Electricity Generation from Coal-Based Power Plants Records 10% Growth in 2021-22 to 2022-23 Period
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New Delhi, August 10, 2023: In a recent announcement by the Union Minister for Power and New & Renewable Energy, it was revealed that the electricity generated by coal-based power plants in India experienced a notable increase of 10% over the span of the last two fiscal years, 2021-22 and 2022-23. The figures provided by the ministry are as follows:
| Year | Generation (in MUs) |
|————-|——————————–|
| 2021-22 | 1,041,487.43. |
| 2022-23 | 1,145,907.58. |
Contrary to concerns of a decline, there was no reduction in coal-based electricity generation in the fiscal year 2022-23 when compared to the preceding year, 2021-22.
Moreover, there were no reports of coal-based power plants shutting down due to coal shortages during both 2021-22 and 2022-23.
Highlighting the government’s efforts to decrease dependency on coal-based power plants, the Minister outlined a series of measures aimed at boosting renewable energy capacity. One such strategy is the establishment of Renewable Purchase Obligations (RPO) and Energy Storage Obligations (ESO). The Ministry of Power has laid out trajectories for RPO for various renewable sources as a percentage of total electricity consumption up to the year 2029-30.
To encourage the expansion of renewable energy capacity, the Ministry of Power has waived inter-state transmission charges for the electricity generated from sources such as solar, wind, green hydrogen, green ammonia, pump storage plants, and energy storage sources.
In a significant step, the Ministry introduced the “Electricity (Promotion of Generation of Electricity from Must-Run Power Plant) Rules, 2021” on October 25, 2021. These rules designate renewable energy projects, including wind, solar, wind-solar hybrid, and hydropower, as must-run projects, exempt from curtailment or regulation of generation based on commercial considerations.
To further promote the adoption of renewable energy and replace costlier thermal and hydro power sources, a revised scheme titled “Flexibility in Generation and Scheduling of Thermal/Hydro Power Stations through bundling with Renewable Energy and Storage Power” was launched on April 12, 2022.
The Ministry of Power, recognizing the importance of battery energy storage systems (BESS), issued guidelines on March 10, 2022, for the procurement and utilization of BESS as part of energy generation, transmission, distribution assets, and ancillary services. This move aims to enhance grid stability and flexibility.
A significant milestone was reached on February 27, 2023, when the Ministry mandated Renewable Generation Obligation (RGO) as per the Revised Tariff Policy, 2016. This resolution necessitates any coal/lignite-based thermal generating station established on or after April 1, 2023, to have a minimum of 40% renewable energy generating capacity or procure and supply an equivalent amount of renewable energy.
In order to facilitate the seamless integration of growing renewable energy capacity into the grid, the government commissioned 11 Renewable Energy Management Centres (REMCs) and one Energy Management Centre (EMC).
In a strategic move to harness offshore wind energy, the government announced the bidding of offshore wind energy blocks with a capacity of 4.0 GW per year for three years starting from FY 22-23, further increasing to 5 GW annually until FY 29-30.
Among other measures, the government has also allowed 100% Foreign Direct Investment (FDI) in the sector and established Ultra Mega Renewable Energy Parks to provide land and transmission infrastructure for large-scale RE projects.
This comprehensive information was provided by the Union Minister for Power and New & Renewable Energy, Shri R. K. Singh, in response to a question during the Rajya Sabha session on August 8, 2023. The government’s commitment to increasing renewable energy capacity while ensuring stability in the electricity sector is evident in these measures and plans for the future.
