Rs 6.67 lakh crore investment needed by 2031-32 to expand thermal power capacity
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
The Power Ministry has estimated that the expansion required in the country’s thermal capacity to meet the growing demand for electricity will entail an expenditure of a minimum of Rs 6.67 lakh crore by 2031-32, Minister of State for Power Shripad Naik informed the Parliament on Thursday.
In order to meet the estimated electricity demand by the year 2031-32, generation planning studies have been carried out by the Central Electricity Authority (CEA), he told the Lok Sabha in a written reply.
As per the study results, it is envisaged that to meet the base load requirement of the country in 2032, the required coal and lignite-based installed capacity would be 283 GW against the present installed capacity of 217.5 GW.
Considering this, the Centre proposes to set up an additional minimum 80 GW coal-based capacity by 2031-32, Naik said.
The estimated capital cost for setting up new coal-based thermal capacity as considered in the National Electricity Plan is Rs 8.34 crore per MW (1,000 MW=1GW). The cost has been worked out at the 2021-22 price level.
To reduce the dependence on coal-based thermal power plants, the government has planned to augment non-fossil fuel-based installed electricity generation capacity.
India, in its Intended Nationally Determined Contributions (INDCs), stands committed to achieve about 50 per cent cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030. At present, it has already achieved 45.5 per cent Installed Capacity from non-fossil fuel-based resources.
To achieve this objective several steps have been taken to promote renewable energy generation in the country the Minister said. These include permitting Foreign Direct Investment (FDI) up to 100 per cent under the automatic route, waiver of Inter-State Transmission System (ISTS) charges for inter-state sale of solar and wind power for projects to be commissioned by June 30, 2025, and declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2029-30.
Besides schemes such as the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM), Solar Rooftop Phase II, 12,000 MW CPSU Scheme Phase II have also been launched to give a big push to renewable energy, the minister added.
