As India's Energy Crisis Worsens, NTPC Plans To Expand Coal-Based Power Fleet

NTPC will award a contract this month to build a 1,320-Mw plant in Odisha, while it may consider awarding fresh contracts for two of its stalled expansion projects at its Lara and Singrauli plants

Currently, NTPC produces 83 per cent of electricity through coal. Image: Getty

Source : Getty

New Delhi: NTPC, the state-run electricity giant, plans to expand its coal-based power fleet in six years with a first new project, according to a report in the Bloomberg.

This move is aimed at a shift in its policy which reflects alarm over the India’s worsening power crisis.

According to the report, NTPC will award a contract this month to build a 1,320-megawatt (Mw) plant in Odisha, while it may also consider awarding fresh contracts for two of its previously stalled expansion projects at its Lara and Singrauli plants.

In India, 70 per cent of electricity generation still comes from fossil fuel.

However, NTPC didn’t immediately respond to an emailed request from Bloomberg for comment on Tuesday.

Recently, several states across the country have encountered prolonged blackouts as scorching heat waves boost energy demand during a time when coal stockpiles are depleting. At some parts of the country, power disruptions are lasting as long as eight hours a day.

During the pandemic years, the demand in electricity faltered. As a result, NTPC slowed plans of expansion at the Lara and Singrauli projects. Rather than focussing on coal-based projects, the company has also been focusing on proposals to increase renewable energy capacity.

However, the company will stick to a target to rapidly expand clean power capacity despite a near-term addition to its coal fleet, an official said. The state-run power producer is targeting to cut the share of fossil fuels to half by 2032.

Currently, NTPC produces 83 per cent of electricity through coal.

According to R Srikanth, a professor of energy and climate at National Institute of Advanced Studies in Bengaluru, NTPC’s plans for the Odisha unit show how India relies heavily on coal for power generation.

 “One way to do that is phase out all old power plants and replace them with modern plants that consume less coal to produce the same amount of energy,” Srikanth said, while adding, “We need to stop defaming coal.”

The new facility of NTPC will replace a smaller plant at the same site that was phased out last year after a service of over five decades.

NTPC has also decided to take steps to address the coal shortages by importing more coal. Supply of coal be will be increased to 20 million tonnes during the fiscal year to March, while the power firm will aim to boost annual coal output by about 86 per cent to 26 million tonnes at its own mines.