King Coal keeps its crown: 100 GW more of thermal projects is possible on the way

Copyright © HT Digital Streams Limit all rights reserved. Industry India produced a record of 1 billion tonnes of coal in FY25. (AFP) Summary of India’s highlight has increased year after year. It is expected to reach 270 GW in 2025, and cross the previous high of 250 GW on May 30, 2024. The central electricity authority expects the power demand to hit 446 GW by 2047 and cross 700 GW by 2047. The center plans to add 100 GW of coal-powered power in the next seven years, and it has the previous target of the 80 GW matter of the Indian substances, and the electricity of the electricity and the fight at the cost of the people, the cost of the country’s people, which has the electricity of the electricity. The additional capacity plan will involve an extra investment of £ 1 trillion, as every 1 MW of power costs averaging £ 5. Despite the boom in solar and wind power, electricity of thermal and hydro projects remains critical. Each electricity network must have a minimum, constant level of power demand, called base load, which is typically provided by coal and hydro projects, given their stable production. “Now the government is looking at the possibility of adding more than 100 GW thermal capacity. The road map is still considered. But the vision is to use the large reserves of domestic coal for power generation and to ensure economic growth and adequate base tax capability,” one of the two people above quoted the state of anonymity. Question growth India’s highlight has increased year after year. It is expected to reach 270 GW in 2025, crossing the previous high of 250 GW on May 30, 2024. The Central Electricity Authority (CEA) expects power demand to hit 446 GW by 2030 and cross by 2047 700 GW. Read also | Govt Eyes Alternative use of coal, emptied mines as well -filled power stations jumped coal production. India has yielded a record 1 billion tonnes of coal in FY25 and expects to continue the growth momentum, with the country expected to produce 1.5 billion tonnes of the mineral by 2030 and the peak of 2 billion tonnes. According to the second person, the Coal Ministery would investigate ways to further increase production and the Ministry of the Power gives an estimate of the availability of coal in the coming years. Both coal and power ministries are working on this front, the person added. Inquiries sent to the ministries of power and coal remained unanswered. “Energy Transitional Road Card in India would differ from the rest of the world, mainly from developed countries. India’s energy demand grows by 6-7%annually, while it reached a peak in several other economies. Furthermore, per capita energy consumption in FY23 kWh (kilowatt-hour) in India, roughly the global average of about 2700 kW. per capital energy consumption and it grows at a fast pace. Director of Primus Partners, a management consulting firm, who calls the reconsideration ‘rooted in energy security, economic growth and grid stability.’ He noted that although renewable energy capacity continues to expand, with a reduced share in the total electricity mixture, which makes a stable base tax critical. and wind in larger relationships. India remains committed to ensuring renewable energy, but a pragmatic approach ensures that the green transition does not compromise growth, “Sandhu said. If the base tax is not met, it can lead to a loss of grid frequency, which makes it unstable. Nationwide eclipses after a roster, which is presumably caused by a failure in Spain’s renewable focused projects. Sustainable dependence on coal despite the surge in clean energy, and comes in the background of concerns about the reliability of large -scale renewable power, and import dependence in the case of critical minerals for green energy. India’s power generation is very reliant on its coal reserves, the fourth largest in the world, with the country the second largest coal producer in the world. The government has emphasized the need to continue coal -based plants and add capacity, along with the ongoing transition. The economic survey argued against the closure of coal plants and asked for climate adjustment, rather than mitigation. Read also | Bhel’s fate for revival as order book fills on request for coal power “There is no valid economic rationale to end coal plants in India, leaving large investments underutilized and stranded and in place without a reliable alternative. life cycle, ”the recording said. It noted that, unlike many developed countries, India’s only reliable energy source is coal, as it has about 10% of the world’s coal reserves, but only 0.7% of the world’s natural gas reserves, another source for thermal power capacity. Business opportunity The way to more coal -power capacity also offers a business opportunity for boiler makers and the EPC power sector (engineering, acquisition and construction) businesses such as state -owned Bharat Heavy Electrical Ltd (Bhel). However, this is also a challenge in light of the company’s limited production capacity. Bhel and General Electric are the most important suppliers of kettles to thermal power stations in the country. Bhel, which is a 19% growth in revenue supported by the orders of the power sector, has its order books full for boilers and EPC contracts. According to Sabyasachi Majumdar, senior director at the Careedge rating, there are only a few manufacturers and EPC contractors for thermal power stations in the country only a few kettle, turbine and generators (BTG). “But the growth in economic activity, increasing use of AI, growing data centers and electric vehicles will lead to a much higher demand for power. Also, a large growing country like India can not give away fossil fuel sources for energy. Basic cargo capacity such as coal and nuclear power will be at least needed for a decade or two. Reading | India set up coal for high power demand, by April 50 million TN stocks targeted, as the government decided to add 80 GW thermal capacity by FY32, Bhel, who struggled to get power equipment contracts for about three years before FY24, had a revival in October last year. 2019 to September 2022 has not yet received orders in the thermal space, now get orders and inquiries, even from private companies for the purchase of BTG goods. Furthermore, the addition of thermal capacity in FY25 has delayed amid factors, including supply restrictions, direct issues, delays in the commissioning and land acquisition. Data from the Central Electricity Authority showed that capacity supplementation of thermal power generation projects in the country delayed about 32% during the first 11 months of FY25. From February FY25, approximately 3.9 GW thermal capacity was installed, compared to 5.7 GW in the same period of the previous fiscal. Catch all the industry news, bank news and updates on live currency. Download the Mint News app to get daily market updates. More Topics #Coal #Bhel Mint Special