KOLKATA: Coal-fired power generation is expected to grow 4.05 per cent during 2017-18, suggests ( ) in its latest estimates. Hydel on the other hand is expected to grow 5.52 per cent, while nuclear will grow only about 2.43 per cent during the same year. CEA has estimated that coal-fired power plants are likely to generate 9,58,444 million units of power in 2017-18. In contrast it had estimated a total generation of 9,21,129 million units of power in 2016-17. About 89 per cent of the estimated power generation from coal-fired power plants has already been achieved between April 1, 2016 and January 2017. The estimate pegs growth of conventional power generation, which includes thermal, nuclear, hydel and import from Bhutan, at 4.35 per cent during 2017-18. Around 12,29,400 million units of power is likely to be generated from the conventional sources in 2017-18 against 11,78,000 million units in 2016-17. Nevertheless, CEA has also estimated that all coal-based thermal power plants need to brace for drastic fall in capacity utilisation to as low as 48 per cent by 2022 as additional non-thermal electricity generation capacities come on stream. CEA has predicted that by 2022 many plants may get partial or no schedule of generation at all – meaning many thermal power plants may have to be kept idle for lack of demand. According to CEA, installed capacity from different fuel types at the end of 2021-22 in base case works out to be 523 gigawatt including 50 GW of coal based capacity addition currently under construction and likely to benefits during 2017-22. “In order to accommodate high quantum of renewable energy into the grid, thermal plants are likely to run at low plant factor (capacity utilisation) in future,” CEA predicted in its report. In fact, it has suggested that a market mechanism through regulatory intervention needs to be evolved so that the owners of thermal plants are able to recoup the investment and at the same time, customers are not unnecessarily burdened with high tariff. “Technical viability of plants goes for a toss if they run under 55 per cent capacity utilisation – a fact which is recognised by the . It is detrimental for the plant boilers and leads to drastic reduction in plant life,” said power sector experts. “These plants are designed to run at very high capacity utilisation – around 85 per cent. When they runs much below full load, it consumes more coal leading to under recovery of energy charges, as regulations does not provide for this.” “Plants without power purchase agreement for even a portion of their capacity are in for trouble. Reduction in capacity utilisation leads to decline in revenue income for the plant. At less than 60 per cent capacity utilisation the margin, which would otherwise provide for operating costs including interest cost, other than coal costs, would get wiped off. These plants are headed for trouble,” he said.
Indian coal-based thermal power plants could see their capacity utilisation drop by as much 48% by 2022 as more renewable energy capacity comes on line, says a report by the Central Electricity Authority. While coal-fired power generation is expected to grow by 4% and nuclear by 2.43% in 2017-2018, in the longer term the authority predicts that renewables will begin to push thermal generation off the grid, hitting earnings for coal-fired power plants as well as reducing efficiency because plants are designed to run at 85% capacity or more. The government has set an ambitious target of generating 50% of India India's installed solar energy capacity has reached 10 GW, according to recently released government and market data. When current Prime Minster Narendra Modi's government came to power in 2014, it revised the country's renewable energy targets from 20 GW to 175 GW of clean energy by 2022. Of this total, 100 GW will be derived from solar capacity. This year, India is expected to add just over 5 GW of new solar. From next year, the country is likely to become the world's third-largest solar market behind China and the US, according to a report by green energy consultancy Bridge to India. Indian energy regulator proposes cheaper renewables certificates India’s Central Electricity Regulatory Commission (CERC) has drafted proposals for a lower cost Renewable Energy Certificate (REC) to boost power companies’ ability to meet their obligations for green energy use. Solar RECs should fall to INR1 ($0.015) per unit from INR3.5 per unit, with forbearance costs (the difference in price between CERC-controlled certificates and what is paid on the market) reduced from INR5.8 to INR2.5. The distribution companies must meet the government's renewable energy purchase obligations, but the expense of RECs has deterred many. The CERC hopes that the lowered prices will boost the solar industry and enable more utilities to use greener energy.