India’s Coal Power No Longer Viable Beyond NEP 2032 Targets
India’s power sector is evolving as renewable energy sources and storage technologies expand. According to Ember, coal is shifting from a baseload provider to a flexible resource that complements variable renewables. This transition renders coal-based power increasingly costlier. Key findings include:
– NEP 2032 Progress: India is on track to meet its solar, coal, and hydro generation mix targets, but growth in pumped-storage and battery storage is essential.
– Nuclear Shortfall: Nuclear energy is projected to miss its targets.
– Cost Implications: By FY31-32, coal-based electricity costs are expected to rise approximately 25% compared to FY24-25.
– Changing Demand: Higher solar penetration will reduce daytime coal plant operation, pushing plants to operate close to technical minimums, lowering load factors to 55%.
– Renewable Competitiveness: Renewable energy with battery storage offers competitive tariffs of ₹4.3 to ₹5.8 ($0.04 to $0.06) per kWh.
India can achieve reliability and flexibility without building new coal plants. Focusing on storage solutions and operational reforms aligns with NEP 2032 goals for a sustainable energy future.