Union government asks private firms to ramp up investments in coal-fired plants despite global pressure
The Hindu
The Union government on November 21 asked private firms to ramp up investments in new coal-fired power plants to meet a dramatic rise in electricity demand and bridge nearly 30 gigawatts of additional requirement by 2030, despite international pressure to stop building such facilities.
The Union government on November 21 asked private firms to ramp up investments in new coal-fired power plants to meet a dramatic rise in electricity demand and bridge nearly 30 gigawatts of additional requirement by 2030, despite international pressure to stop building such facilities.
Power and Renewable Energy Minister R. K. Singh, in New Delhi, asked private companies to invest in coal projects and "not miss the growth opportunity," according to three sources present in a meeting.
The meeting with private investors comes weeks before the U.N. climate conference, at which France, backed by the United States, plans to seek a halt to private financing for coal-based power plants, according to a Reuters report. The Power Ministry did not immediately respond to requests for comment.
The private investment share in the power sector started dwindling after 2018 when it was more than, or on a par with, government investments. Currently, it stands at 36% of the total installed capacity.
Most of the coal-based capacity under development is being set up by State-owned companies, with Adani Power and JSW Energy the only private companies building such plants.
Many private companies stopped building new coal-based plants more than a decade ago due to a lack of financing in the absence of long-term power supply bids from consumers.
In recent years, however, energy demand has outpaced expectations, as economic activities picked up. Since August, the energy demand rose 18% to 20% year-over-year and the Union government expects it to rise by at least 6% annually till end of this decade.