Delhi’s clean power goal has a problem: Idled fossil fuel plants
India’s capital city is seeking to shed its onerous contracts with fossil fuel power plants to reduce costs and free up funds for clean energy.
Tata Power Delhi Distribution Ltd., which retails electricity to customers in New Delhi, is in talks with Delhi’s provincial government and the federal power ministry to get some of its contracted thermal power re-allocated to other states, Chief Executive Officer Ganesh Srinivasan said in a phone interview. It also plans to oppose any life time-extension plans for aging plants it has contracted to buy electricity from, he said.
The effort underscores how India’s electricity sector continues to struggle with debt and overcapacity after a massive build-out of plants to power a surge in economic activity that never fully materialized. The pandemic has accentuated the problem, leaving nearly half of India’s thermal power capacity idled, with the cost overhang impeding investment toward renewables and grid improvements.
