Dear
readers,
In
recent news, the central government has issued an order for all power plants
using imported coal to operate at full capacity in order to meet the increasing
electricity demand in India. This move signifies that the demand and supply of
electricity is precariously balanced, with electricity generation up 10% in
January 2023, implying a healthy demand for electricity.
The
decision is expected to benefit thermal power producers such as NTPC, Tata
Power Co, JSW Energy, and Adani Power, who have large thermal power generation
capacities and can utilise their assets better. The government has invoked
Section 11 of the Electricity Act, which will allow the companies to recoup
fuel costs, benefiting their profitability.
However,
the situation also highlights the need for a long-term solution for India's
energy requirements. Domestic coal production is falling short of India's
requirements, and while solar power generation capacities are being rapidly
added, this form of energy is not available during evening peak hours and
nights. This puts the onus on conventional energy, and the government should
consider beefing up conventional energy capacities to meet peak energy demand
or as a back-up.
In
conclusion, while the current move to operate power plants using imported coal
at full capacity may address the immediate energy demand in India, a long-term
solution is required to ensure sustainable and reliable access to electricity.
The government and other stakeholders must continue to work together to explore
innovative solutions and address the challenges facing India's energy sector.
Thank
you for reading,
Comments
Post a Comment