R. K. Singh Affirms Vital Role of Thermal Energy Alongside Renewables, Awaits Storage Revolution

In a pivotal meeting held on November 21, 2023, Union Minister for Power and New & Renewable Energy, Shri R. K. Singh, engaged with power sector stakeholders in New Delhi to strategize thermal power capacity expansion and address industry challenges. Key attendees included representatives from the Ministry of Power, state governments, Central Electricity Authority, and Public Sector Enterprises such as NTPC, REC, PFC, alongside industry participants like independent power producers and vendors.

Addressing the gathering, Minister Singh unveiled the government’s commitment to augmenting thermal power capacity by 80 GW by 2031-32 to meet the escalating power demands fueled by the rapid economic growth of the country. Emphasizing the indispensable role of coal-based thermal capacity, Singh revealed plans to initiate work on 55 GW – 60 GW beyond the initially anticipated 25 GW. The move is a response to the surging power demand, projected to reach new heights in the coming years.

Singh stressed the imperative for states possessing thermal capacity to maintain and upgrade existing facilities promptly. He warned that reliance on the central reserve for power supply would not be entertained, emphasizing that additional power allocations would favor states actively maintaining their capacities. Moreover, Singh encouraged states interested in expanding their capacities to proceed with their plans.

The Minister asserted that the power industry could anticipate a steady influx of orders for thermal capacity addition over the next 5 – 7 years, dismissing premature dismissals of thermal energy from previous years. He underlined the enduring relevance of thermal energy until energy storage becomes cost-effective for round-the-clock supply through renewable energy.

Singh urged industry players to seize the opportunity, preparing for indigenous development and viewing the challenges ahead as growth opportunities. He cautioned that external assistance might be limited, emphasizing the need for self-sufficiency and preparedness within the industry.

Acknowledging concerns raised by EPC vendors such as GE & L&T regarding the bidding process and challenges faced by other equipment suppliers, Singh assured a thorough review of these issues. He urged vendors and contractors to submit their concerns and suggestions for collaborative problem-solving.

Power Secretary Shri Pankaj Agarwal echoed Singh’s sentiments, emphasizing the long-term relevance of thermal energy until 2047. He encouraged private sector entities to actively participate in capacity additions, foreseeing a robust demand-supply balance in favor of suppliers for the next two decades.

The meeting portrayed an optimistic business environment, supported by the government’s payment security mechanism and assurances of timely payments. Minister Singh advised industry players to enhance manufacturing capacities to meet the impending surge in demand.