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India’s rapid power demand sparks need for additional coal generation: CEA Chairman

New Delhi, Oct 13 (IANS) India’s rapidly growing electricity demand could require the country to build substantially more coal-fired generation capacity than previously projected even as it maintains an aggressive renewable energy expansion programme, said Ghanshyam Prasad, chairman of the Central Electricity Authority of India, on Tuesday.

At an event organised by the Indian Chamber of Commerce, the CEA head noted that demand trends may force planners to reassess the scale of coal capacity additions needed to ensure reliable electricity supplies over the coming decade.

Moreover, the country had projected last year that it would add 97 gigawatts (GW) of coal-fired power capacity by 2035, taking total installed coal capacity to about 307 GW.

However, stronger-than-expected growth in power consumption could push future requirements significantly higher.

“Demand is growing and as demand grows we need stable sources of supply to meet that demand,” Prasad said.

According to him, additional coal-based capacity requirements could rise beyond earlier estimates, potentially reaching between 105 GW and 150 GW above current expansion plans.

The remarks highlight the challenge facing India as it seeks to balance surging electricity consumption with its long-term clean energy transition goals. While renewable energy capacity continues to grow rapidly, policymakers remain concerned about ensuring round-the-clock power availability and grid stability.

Power demand has strengthened markedly this year with daily peak demand running around 45 GW to 50 GW higher than levels recorded a year earlier, Prasad said.

In addition, reduced rainfall during the monsoon season has also curbed hydropower generation, increasing reliance on thermal power plants to bridge supply gaps.

The government data showed electricity shortages climbed to 560 million kilowatt-hours (kWh) in September which was the highest level since August 2023 despite higher output from coal-fired generating stations.

Coal-based electricity generation rose 13.3 per cent year-on-year in September, while hydropower generation declined by about 20 per cent compared with the same month last year.

Prasad stressed that the renewed focus on coal should not be interpreted as a slowdown in India’s renewable energy ambitions.

Notably, India added roughly 50 GW of renewable energy capacity last year and is expected to continue commissioning more than 50 GW annually in the coming years, he said.

However, the CEA chief noted that renewables alone cannot meet the country’s growing electricity needs without complementary sources of firm power.

Expanding nuclear generation, pumped-storage hydropower and other balancing technologies will be crucial to maintaining grid reliability as renewable penetration increases.

–IANS

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