New Delhi, 22nd Nov 2023: Union Power and New & Renewable Energy Minister R. K. Singh emphasized the critical need for round-the-clock power availability in India’s economic growth. Singh stressed that renewable energy sources alone cannot fulfill this demand and urged the industry to invest in thermal power capacity in India. The minister stated that thermal energy remains essential until energy storage becomes cost-effective for continuous renewable energy supply in India.
Government of India Aims for 80 GW Thermal Power Capacity by 2031-32
Speaking at an interaction with power sector stakeholders in New Delhi, Singh announced the government’s decision to add 80 GW thermal power capacity by 2031-32 to meet the escalating power demand. He highlighted the rapid growth of the economy, emphasizing the necessity of 24×7 power availability for India’s economic development.
States Urged to Maintain Thermal Power Capacity
Singh urged states with thermal capacity to ensure maintenance and timely renovation of their plants. He emphasized that states maintaining and running their capacities will receive additional power allocations, encouraging those willing to add capacities to proceed.
Industry Advised to Prepare for Thermal Capacity Addition
The Power Minister urged the industry to plan for the addition of thermal capacity, assuring a steady stream of orders for the next 5-7 years. Singh emphasized that thermal energy, prematurely written off in the past, will remain relevant until energy storage becomes viable for continuous renewable energy supply.
Business Environment in the Power Sector Favorable
Singh highlighted the excellent business environment in the power sector, citing a payment security mechanism guaranteeing payment within 75 days. He noted that current dues are up to date, and even legacy dues are being paid. The Minister encouraged the industry to ramp up manufacturing capacities to meet the growing demand, anticipating a suppliers’ market for the next 20-25 years.
Concerns of Equipment Suppliers Addressed
EPC vendors such as GE & L&T raised concerns about the bidding process, and Singh assured them that their concerns would be addressed. Other equipment suppliers voiced issues such as a credit shortage in the market, bank guarantees, qualifying requirements, and technical specifications. The Minister invited vendors and contractors to submit their concerns and suggestions for workable solutions.
Thermal Energy Projected to Remain Relevant Until 2047
Power Secretary Shri Pankaj Agarwal echoed the Minister’s statements, stating that thermal energy would remain relevant until 2047. He emphasized the need for at least 80,000 MW of capacity addition by 2031-32 to meet base load requirements. Agarwal encouraged the private sector to proactively seize the opportunity and add capacities to address growing power demands.
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