National electricity plan: Rs 33.60 trn needed for power generation

Central Electricity Authority has outlined the National Electricity Plan for 2022-2032, emphasising renewable energy growth and the funds required for power generation and storage capacity

To meet the power generation capacity targets from 2022 to 2032 of the country, funds amounting to Rs 33.60 trillion will be needed, according to the National Electricity Plan (NEP) released by the Central Electricity Authority (CEA). 

The plan outlines the electricity demand, generation capacity, and renewable energy targets for the coming years.

According to the NEP, the share of non-fossil fuel-based capacity is expected to increase to 57.4 per cent by 2026-27 and further to 68.4 per cent by 2031-32, compared to the current level of 42.5 per cent.

The plan includes projections for installed capacity, with a focus on renewable energy sources such as solar, wind, and hydro power. It also highlights the need for energy storage capacity, both through Pumped Storage Plants (PSP) and Battery Energy Storage Systems (BESS).

The NEP aims to achieve a non-fossil fuel-based installed capacity of around 500 GW by 2029-30. It expects the average Plant Load Factor (PLF) for coal-based capacity to be around 58.4 per cent in 2026-27 and 58.7 per cent in 2031-32.

The plan also addresses the coal requirement for power plants, including domestic coal production and imports.

The estimated fund requirement for capacity addition during the periods 2022-2027 and 2027-2032 is Rs 14,54,188 crore and Rs 19,06,406 crore, respectively.

Furthermore, the NEP sets targets to reduce the average emission factor, aiming for a decrease from 0.548 kg CO2/kWhnet in 2026-27 to 0.430 kg CO2/kWhnet by 2031-32.

The report added that under the Electricity Act, 2003, the Central Electricity Authority is responsible for preparing and notifying the NEP every five years, in line with the National Electricity Policy.