Nearly 11.5 gigawatts (GW) of coal power capacity under development moved forward in India through various approval stages in the first five months of this year, reveals the latest analysis by Global Energy Monitor (GEM) and Centre for Research on Energy and Clean Air (CREA).
The country is actively developing 65.3 GW of coal power capacity. Of this, 30.4 GW of coal power capacity is under construction and 35 GW is in various pre-construction phases. Researchers found that India permitted coal projects of around 3.9 GW while 7.6 GW received Terms of Reference, moving them one step closer to permits.
“India’s coal approval spree in 2023 marks a change in the country’s energy transition pattern. Last year, it did not approve any new coal power plants for the grid, which was in line with the global trend of moving away from the dirty, expensive, and outdated energy,” says Flora Champenois, research analyst at GEM.
The study further highlights that the country’s current proposals overshoot the already significant coal capacity expansion projected in the energy plan.
Analysis of National Electricity Policy (NEP 2023) shows that India’s under-development coal power capacity exceeds estimated requirements for 2027 and 2032. “More than 8 GW of non-captive coal-fired power plant capacity in active construction is unnecessary, and all 34.9 GW of the pre-construction capacity is also not needed. Under the plan’s 10-year coal projections, there is no need for any new projects to enter the pre-construction pipeline,” the study finds.
Stating that electricity demand estimated in the plan has always been over-projected, Sunil Dahiya from CREA says, “In the past, this has led to billions of dollars worth of coal power plants turning into non-performing assets (NPA). The ongoing push for more coal power proposals already exceeds requirements and therefore could again lead to more stranded assets.”
Adding that going ahead with these projects will not just worsen financial standing, Dahiya says, “It will also lead to climate, air pollution, and health disasters in the future. Adequate and efficient actions need to be taken now to avert these disasters.”
Researchers also stressed that India has the opportunity to accelerate the global coal to clean energy transition at the upcoming G20 leaders’ summit in New Delhi.
