INDIA'S DEPENDENCE ON
THERMAL POWER TO DIP TO 50%
BY FY22: REPORT
India's dependence on
thermal power will reduce to 50 per cent by 2021-22 and 43 per cent by 2026-27
on the back of renewable energy (RE) capacity additions, a report said
Thermal power includes diesel, gas and coal-based electricity
generation which contribute 63 per cent of total electricity generation
capacity in India as per the report.
"India is chasing ambitious RE targets and enhancing
its T&D (Transmission & Distribution) infrastructure. Increasing RE use
is decreasing dependence on coal. Contribution of the thermal sector will
reduce to 50 per cent by FY22 and 43 per cent by FY27," said a report by
Praxis Global Alliance and Zetwerk (Zetwerk offers
high-quality production).
The recent study by Praxis Global Alliance, a leading
management consulting and advisory firm, and Zetwerk, an Indian B2B marketplace
for manufacturing products and services, highlights the impact of COVID-19 on
the overall power sector including key segments - generation, transmission, and
distribution.
According to the
report the installed power generation capacity has increased at 8.6 per cent
CAGR over the period FY12FY19 and renewable energy is growing at the fastest pace.
New private investment in the generation sector is expected
to be largely in the renewable sector, it added.
The report showed that owing to
past bad experiences, long-term PPAs (power purchase agreement) in thermal power are unlikely to pick-up in the future. Renewables
sector is likely to continue with long-term PPAs, it added.
Government can play an instrumental
role in ensuring the good financial health of DISCOMs to ensure cash flow along
the supply chain and aggressively chasing the capacity addition targets
for renewable energy generation, Aryaman Tandon, Director, Praxis Global
Alliance, said.
India's power sector has a great potential to grow post-COVID as demand
and power prices have started to recover now, Zetwerk CEO and Co-Founder Amrit
said. (Only the headline and picture of this report may have been reworked by
the Business Standard staff; the rest of the content is auto-generated from a
syndicated feed.)
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