This report published by CII – BCG focuses on the future of the Coal based power generation. It highlights that in the background of the awakening of the renewables, Thermal Power has not lost its significance. Infact in a country like India which is very much cost sensitive; Thermal Power is the most cost effective option to make power available to every individual. Both renewables and conventional fuel sources have a role to play in sustaining India’s growth story. However, in the short term, both the sources come in direct contest over the same resource pool - Investor funds, constrained procurer demand and government policy attention.
To balance the interests of renewable capacity increase and the interests of existing Coal-based thermal plants, policy interventions would be required. In addition to policy interventions, changes would also be required at Coal Supplier and GenCos to ensure coal based generation remains competitive. While the recent growth of the Power sector is a heartening sign, the stakeholders have to now reevaluate the role of Coal-based generation going ahead and accordingly adapt policy and operations to remain competitive in the new business paradigm.
This report was released at the Energy Conclave 2017 held on 17 August 2017 at Kolkata, West Bengal.