Central Electricity Authority Advises Against Retirement of Coal-Based Power Stations Before 2030

The Central Electricity Authority has issued an advisory dated 20.01.2023 and 07.07.2023 to all the Thermal Power Utilities not to retire or repurpose their coal-based power stations before 2030 and to ensure the availability of thermal units after carrying out Renovation and Modernization (R&M) activities, if required, considering the expected energy demand scenario in future.

Further, electricity generation is a delicensed activity as per Section-7 of the Electricity Act, 2003 and phasing out/retirement of units are decided by Power Generating Utilities/Companies based on their own techno-economic, energy demand and environmental reasons.

As the economy continues to grow and access for affordable electricity becomes more widespread, the coal sector will remain a crucial source of energy in India. Despite a growing push towards renewable energy, coal is projected to remain as a prominent source of energy for providing affordable and reliable electricity to the consumers. As the percentage contribution of renewables in the nation’s primary energy mix rises, the share of coal will decrease, however, it will increase on an absolute tonnage basis.

Although, in due course, some mines may close down due to exhaustion of reserves but at the same time, many new coal mines are being operationalized to meet the growing energy demand. These mines are not only ensuring affordability and energy security of the nation but are also providing new opportunities for employment and redeployment of workers and at the same time generate indirect employment opportunities in coal sector.