Union Power and New & Renewable Energy Minister, R. K. Singh, advocates the necessity of continuous power availability for India’s economic growth, emphasizing that renewable energy sources alone cannot meet this demand. In a recent interaction held in New Delhi on November 21, 2023, the minister stressed on the significance of thermal power and urged industry players to invest in it. Singh highlighted that overlooking thermal energy until cost-effective energy storage is viable for round-the-clock supply via renewable energy is premature.
Singh emphasized the government’s decision to augment thermal power capacity by an additional 80 GW by 2031-32. He explained that India’s surging power demand, propelled by rapid economic growth, necessitates 24×7 power availability. However, solely relying on renewable energy might fall short, compelling the inclusion of coal-based thermal capacity to meet energy needs. He revealed plans to expedite the construction of 55-60 GW thermal capacity to address the escalating demand.
The minister emphasized the importance of maintaining and utilizing existing thermal capacities in states, warning that those not maintaining their capacities won’t receive additional central power allocation. Additionally, Singh encouraged states aiming to expand capacities to proceed with their plans.
Singh foresees a steady stream of orders for thermal capacity addition over the next 5-7 years, urging industry participants to prepare and invest in indigenous development. He cautioned that missing out on this capacity addition opportunity might pose a setback to those in the power business.
Furthermore, Singh highlighted the exceptional business environment in the power sector and emphasized a payment security mechanism guaranteeing timely payments. He advised industry players to enhance manufacturing capacities to meet future demand.
The power secretary, Pankaj Agarwal, echoed Singh’s sentiments, underlining the continued relevance of thermal energy till 2047. He stressed the necessity of around 80,000 MW capacity addition by 2031-32 to meet the base load requirements, urging private sector involvement in proactive capacity addition.
The meeting provided a platform for industry representatives to raise concerns regarding bidding processes, credit shortages, and technical specifications. Singh assured that their concerns would be addressed, emphasizing collaboration between DISCOMs, power developers, and vendors to ramp up capacity to meet future power demands.