Thermal power is pushed to a corner. What got it here? Overzealous forecasts and tepid demand


Workers watch as a defunct 118 metre cooling tower, one of India’s tallest, is demolished near Gandhinagar in Gujarat.

Synopsis

After gas-based power plants entailing INR1 lakh crore investment, coal-fired power plants with a combined capacity of 50,000MW could become stranded. Power-sector insiders say illogical forecasts by the CEA have resulted in overcapacity. Adding to the woes are the lack of assured fuel supply and agreements to sell power, besides the government’s focus on solar power.

As the Indian economy struggles to come out of a low-growth phase, the talons of slowdown are gradually clasping the country’s electricity sector. Coal-based power plants with a combined capacity of 50,000MW are facing redundancy, thanks to a combination of factors including “unrealistic forecasting” by the Central Electricity Authority (CEA), tepid demand, and the government’s emphasis on renewable energy. The electricity sector was already

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