Eco Survey cautions against shutting down thermal energy sans alternatives

Bats for Advanced Ultra Super Critical (AUSC) power plants, carbon capture technology

Lessons learned from the experiences of developed economies caution against shutting down thermal energy without adequate technological alternatives that ensure a stable energy supply, the Economic Survey 2024-25 has said. On the other hand, the challenges of harnessing renewable energy at scale indicate that India will need to continue efforts to maximise the efficiency of its existing fossil fuel resources in the medium term, it has stressed.

 

Tabled in Parliament on Friday, the Survey has reiterated the government’s position that continuing investments in hydrocarbons are necessary to meet India’s energy requirements. It said India must decisively leverage its best resources, advanced technologies, and expertise to accelerate its journey towards becoming a developed nation by 2047 while ensuring a low-carbon pathway.

 

“Cheap power is possible only with coal-fired thermal plants. So, both are two sides of the same coin,” wrote Ed Conway. The Survey noted that this complex interplay makes one thing clear for India—it must focus more on adaptation than on emission mitigation.

 

The curbing of further investments in traditional fossil fuels has remained a major issue in recent years. In May 2022, the G7 countries agreed to end taxpayer funding for oil, gas, and coal projects overseas. However, India has argued against any move to curb investments in expanding or exploring new hydrocarbon resources at the G20 and COP summits.

 

The Survey has particularly highlighted the substantial hurdles faced by renewable energy, especially in energy storage technologies and sourcing critical minerals essential for this transition. “While alternative solutions such as green hydrogen present a viable option for the medium term, affordability issues remain a significant barrier to widespread adoption. Furthermore, although nuclear energy could contribute to India’s energy mix, its expansion is impeded by a lack of a supportive ecosystem and the monopolistic nature of nuclear fuel supply chains,” it said.

 

Way Ahead 

The advancement and deployment of low-emission thermal power technologies, including Advanced Ultra Super Critical (AUSC) power plants, has been suggested as a critical alternative in the energy transition. Investments in research and development related to battery storage technologies, as well as the recycling and sustainable disposal of waste associated with renewable energy systems, are essential for ensuring a reliable energy supply and its sustainability, the Survey stated.

 

India is the third-largest emitter of CO2 emissions after China and the United States. According to government figures, the country emits close to 2.65 gigatonnes (GT) of CO2 annually, which accounts for approximately 7 per cent of global CO2 emissions in 2019. India has consistently emphasised that this contribution is minimal compared to China and the United States, which are responsible for 28 per cent and 15 per cent, respectively, of global emissions.

 

The Survey has also called for a mission-mode approach to developing carbon capture, utilisation, and storage (CCUS) technology, stating that it is “essential for the continued use and enhancement of thermal power plants in the medium term.”

 

CCUS involves the capture of CO2 from large point sources, including power generation or industrial facilities that use fossil fuels or biomass for fuel, and its conversion into value-added products such as green urea, building materials like concrete, and chemicals like ethanol and methanol.

 

Both the Coal Ministry and the Petroleum and Natural Gas Ministry are in the process of formulating dedicated plans for using CCUS as an effective measure against pollution and emissions. Additionally, Niti Aayog is working on a comprehensive national policy on CCUS.