India Extends Mandate for Imported Coal-Based Power Plants to Operate at Full Capacity

New Delhi, Dec 28 (KNN) The Indian government has extended its directive for imported coal-based power plants to operate at full capacity until February 28, 2024, according to a circular released on Friday. 

The move aims to bolster power supply during the winter months and ensure grid stability amidst fluctuating energy demands.

In October, authorities invoked an emergency clause under the Electricity Act, mandating companies like Tata Power, Adani Power, and Vedanta to keep their imported coal-fired plants running at full capacity. 

Initially set to expire on October 15, the mandate was extended until December 31 before this latest extension.

India's imported coal-based plants account for nearly 16 gigawatts (GW) of its annual electricity capacity, contributing significantly to the national grid. However, coal-fired power output has recently faced headwinds. 

September marked the second consecutive month of declining coal-based electricity generation, driven by slower electricity demand growth and a surge in solar power output.

Adding to this, India's thermal coal imports plummeted by 31.8 per cent in October—the sharpest contraction in 15 months—highlighting a shifting energy landscape. 

Despite this, overall coal-based power generation in the country rose by 5 per cent year-on-year during the April-September period, according to government data.

The extension reflects India’s efforts to strike a balance between ramping up renewable energy production and maintaining a reliable power supply during transitional periods. 

While solar and other renewable sources are gaining traction, coal remains a backbone of India’s energy mix, especially during periods of heightened demand.

Analysts suggest that the mandate's continuation underscores the challenges of phasing out coal in a country where it still accounts for more than 70 per cent of electricity generation. 

The decision also hints at potential bottlenecks in domestic coal supply, which might have spurred reliance on imported coal-based plants.

As India pushes for a greener energy future, its dual reliance on renewables and traditional coal highlights the complexities of managing one of the world’s fastest-growing energy markets.

(KNN Bureau)