The government has asked states to ensure that power plants in their respective regions run at their full capacity, Union minister for power RK Singh said on Monday.
He also said the government plans to add 10,000 MW thermal capacity and 21,000 MW of renewable energy capacity by the end of the current financial year to meet the rising power demand. He was talking to mediapersons at the National Conference of Power and New & Renewable Energy Ministers of States & UTs.
“If some state is not running its plants at peak demand, we will not be able to supplement from the central pool,” he said.
As per the government, there is a need to add about 80,000 MW of thermal capacity under construction. This addition is being done by public sector companies and the government expects to rope in private sector investments for this too.
“There is going to be pressure on nations at COP to reduce usage of coal. We are not going to do this, since our point of view is clear, that we are not going to compromise on availability of power for our growth, even if it requires that we add coal-based capacity,” Singh said.
Additionally, the power minister emphasised on the need for coal blending so that supply can match demand. “Coal India has increased production, but our demand has increased faster. This has led to shortages and that’s why we need to do 6% blending,” Singh said.
Last month, the government extended mandatory blending of imported coal with domestic fuel for power gencos till the end of this fiscal. It has also extended the emergency clause or Section 11 of the Electricity Act, 2003, which mandates imported coal-based power plants to run on full capacity till June 30, 2024. The clause was to expire in October.
Singh also urged states to set up new power plants near coal belts so that issues related to long-distance transportation of coal and availability of rakes do not arise.
In October, the country faced a shortfall of around 6 million tonne of coal, as per data provided by the minister at the conference.
To meet the rising demand for power in the next financial year, the government is also planning to utilise gas-based capacity during the non-solar hours, it said. The minister also highlighted that the government is planning to set up 5.8 million tonne green hydrogen manufacturing capacity and will increase the capacity addition.
“The Government of India has sanctioned Rs 21,000 crores project to evacuate 5,000 MW renewable energy from Ladakh,” said Power Secretary, Pankaj Agarwal. “On distribution sector, we have seen significant results since implementation of Late Payment Surcharge Rules. The overdue amount has come down from Rs 1,39,000 crore to around Rs 67,000 crore.”
On renewable energy front, the secretary said that Battery Energy Storage VGF Scheme has been sanctioned for 4,000 MWh capacity.
New & renewable energy secretary Bhupinder Singh Bhalla asked states to overcome challenges in PM KUSUM and Rooftop solar scheme for increasing adoption of solar energy.