India delays coal plant flexibility plan by one year
India delayed its coal flexibility plan by a year to resolve retrofitting costs. This occurs as solar curbs rise and officials seek to lower power emissions.
India has postponed its national plan to require coal-fired power plants to reduce output during periods of high solar generation by one year. According to government documents, the delay is necessary as regulators determine how to compensate power producers for the increased costs associated with technical retrofitting and maintenance. Analysts warn that the lack of flexible coal generation as the country expands its renewable capacity threatens to waste green investments, increase compensation costs, and boost emissions that could otherwise be avoided. Currently, the world’s second-largest coal user is curbing solar output due to a lack of dedicated transmission lines and operational constraints within its coal fleet. The energy think-tank Ember estimates that solar generators, which are frequently told to cut production because coal plants cannot ramp down, could be owed as much as $76 million for the eight months ending in December—a cost that will likely be passed on to consumers. Government officials attributed the one-year delay to the absence of clear rules for reimbursing coal plants for the costs of cutting their minimum use rate from 55% to 40%. The Central Electricity Authority (CEA) noted that retrofitting coal plants would increase electricity tariffs by only 0.28 to 0.60 rupees per kilowatt-hour, whereas battery storage would cost between 5.76 and 6.04 rupees per kilowatt-hour, making flexible coal at least ten times more cost-effective. This delay puts the nation behind China, which last year reduced its minimum coal plant utilization rate to a range of 25% to 40% to better integrate renewable energy. The state-run operator NTPC has cautioned against the accelerated wear and tear of equipment that occurs at a 40% load, urging more detailed studies. However, CEA officials responded that international examples show coal plants can operate safely at lower levels if they are properly modified. The federal regulator has yet to approve the higher maintenance costs proposed by the CEA, citing a lack of sufficient operational data.
