India: Renewable energy is booming

     India's coal-fired power generation is increasingly being squeezed out of the market by cheaper renewable energy sources such as solar energy, and India's coal industry is in trouble. The cause of the problems encountered by Indian coal power is mainly economic, not policy. Off grid solar power systems energy can be provided in the power purchase agreement at Rs. 3 (4.2 cents) per kWh, while existing coal-fired plants generate electricity at Rs. 4 per kWh and new coal power plants Between 5 and 6 rupees per kWh.

    Because renewable energy has lower operating costs, it will also squeeze coal power's market share in operations. Therefore, the current utilization rate of coal power units in India is about 52% -55%, which is far lower than the economically reasonable level at the time of design. According to data compiled by the Global Energy Monitor, India's new coal-fired power generation in the 7 years from 2010 to 2016 was 106 GW, with an average of 15.2 GW per year. Since then, the growth rate of coal power installations has slowed down, increasing by 8.9 gigawatts in 2017, 8.4 gigawatts in 2018, and 8.2 gigawatts in 2019.

    Although India still has about 36 GW of coal-fired generating units under construction, it will be put into operation within the next 10 years, and the new generation may drop below 5 GW per year. It is worth noting that the vast majority of coal-fired units under construction are constructed by the state-owned power generation company NTPC, funded by state-owned banks, and the private sector has withdrawn from new coal-fired power generation investments.

    Of course, it is certain that the surge in renewable energy does not mean that Indian coal is dying. Even optimistic forecasts for renewable energy sources indicate that coal power generation will still account for about half of India's power generation by 2030.