New Delhi, Jan 30 (KNN) Central Public Sector Enterprises (CPSEs) in the power sector, under government direction, are poised to initiate the development of thermal power plants (TPPs) in proximity to coal mines.

Concurrently, ongoing strategic partnerships with Indian Railways aim to invest in coal logistics initiatives, strategically addressing the escalating power demand in India, which is expanding at an annual rate of six to seven percent.

This directive is a crucial component of an action plan devised after a meeting at the Prime Minister's Office (PMO) in June last year. The plan aims to assess readiness and formulate strategies to meet the escalating power demand in the country.

Given the escalating appetite for electricity from the commercial, industrial (C&I) sector, and households, with peak power demand projected to reach 366 gigawatts (GW) by 2032 (up from 243 GW in 2023), the government plans to add a total of 80 GW of thermal capacity by FY32.

Currently, 25-30 GW of TPP capacity is under construction, with an additional 50-55 GW planned for inclusion.

This becomes imperative as more firm power is needed to balance the increasing penetration of renewable energy, ensuring the integrity of the power transmission network while catering to the nation's growing electricity demand.

According to JM Financial, approximately 2,754 megawatts (MW) of thermal capacity was added between April and December in FY24. The expectation is for an additional 6-8 GW capacity to be commissioned by March 2024.

(KNN Bureau)