In theory, economics is very simple. If a farmer sells an apple for $ 4 and a farmer sells it for $ 5, who will call him when they need an apple? Farmer B, of course. If you want to sell it again and become an Apple World Jeff Bess, you are crazy to pay more for apples than you need.
Now imagine that you are of Indian descent and want to supply electricity to the overcrowded population. You can build more expensive coal-fired power plants or smaller power plants, such as solar and wind farms. You are still crazy to choose the most expensive option, but is that just what India intends to do? how? Because coal is like religion, and intellect is rarely used for theological discussions.
The Institute of Energy Economics and Financial Analysis says India has the potential to build 33 coal-fired power plants and another 29 megawatts under construction to build new coal-fired power plants. According to IEEFA research analyst Kashsh Shah, all assets will be closed as soon as they fall. “Coal energy cannot be easily compared to the cost of renewable energy for young people. Solar tariffs in India are even lower than the cost of running existing coal-fired power plants.
“New coal-fired power plants have not been identified in the last 12 months, and there is no activity within the 29 GW pre-construction capacity. This reflects a lack of funding for new coal projects, as well as a reduction in the demand for electricity, which has had a significant impact on coal.
Despite such hurricanes, the Central Electric Power Corporation still has India to increase its coal production capacity by 2630 GW. This requires 58 GW net new capacity increases, or about 6.4 GW per year.
CEA’s financial and operational tensions in the thermal energy sector, which means that India’s coal capacity plans need to be revised urgently, make CEA’s predictions “unthinkable.”
“Any forecast for future generations in India should take into account that new coal-fired power plants could be a failed asset,” Shah said. “The new capacity will only be economically viable if it replaces the end of life by obsolete combustion technology and areas far from coal mines.
In the meantime, the coal plant must be flexible enough to deliver energy to high demand times, and the day-to-day cost must be high to make it reasonable to reduce the cost of daily use.
Without material growth in the demand for electricity, more and more constant emissions will increase the capacity of state-owned companies to increase their capacity, which in turn will increase the capacity to pay for capacity-only heat exchangers.
A.D. To achieve a net zero emissions by 2050, the International Energy Agency’s roadmap does not recommend new investments in fossil fuel supply projects and final investment decisions for new unburned coal plants. There is little food demand from private investors to jeopardize new capital in the IEEFA sector, which continues to carry $ 40-60 billion worth of non-performing or closed assets.
Only the Indian State Power Finance Corporation and the Rural Electricity Corporation will continue to generate new coal, but that may be more politically motivated. About half of the 33 GW capacity under construction in India is supported by state-owned companies. After the completion of IEEFA, they recommend that they “stay away from” currently under construction “to avoid the risk of unemployment.
“Governments, investors and utilities around the world are rapidly shifting to renewable energy,” Shah said. “India needs to be able to meet the growing demand for energy by reducing the cost of renewable energy and battery storage, which can provide a clean grid.
“Accelerating renewable energy missions is crucial to reduce India’s overall energy costs and to support the rapid electrification of transportation and other industries. Extremely low cost renewals will enable the development of a green hydrogen economy to strengthen India’s long-term energy security goals. It seems to us basic economics.
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