A draft electricity policy document suggests that India may build new coal-fired power plants, because of the low cost of construction, despite growing calls from environmentalists, who cite falling solar and wind energy prices. Coal’s contribution to electricity generation in India fell for the second straight year in 2020. However, the fuel still accounts for nearly 75 per cent of India’s annual output.
A draft of the National Electricity Policy (NEP) 2021 – which has not yet been made public – stated that India may add new coal-fired capacity, although it recommended tighter technology standards to reduce pollution. The NEP draft read: “While India is committed to add more capacity through non-fossil sources of generation, coal-based generation capacity may still be required to be added in the country as it continues to be the cheapest source of generation. All future coal-based plants should only deploy ultra-super critical technologies or other more efficient technology.”