As India continues to develop, its energy requirements are on the rise. In 2023, power generation in India surged by 11.3%, marking the quickest pace in at least five years.
The Ministry of Power has emphasised the need for substantial capital expenditure, estimating a requirement of Rs 6.67 lakh crore by March 2032 to meet the escalating energy demands. India is projected to necessitate an additional 80,000 MW of power from coal by 2032.
Coal-based power generation in India has exhibited growth, escalating from 1034 billion units in FY21 to 1197 billion units in FY23, with an anticipated increase to 1333 billion units by FY32.
Furthermore, India’s peak energy demand, recorded at 135 GW in 2013-14, is expected to surge to 277.2 GW by 2026-27 and 366.4 GW by 2031-32 according to the Electric Power Survey.
On May 30, 2024, the power sector reached a peak energy demand of 250 GW, The National Electric Plan projects coal-based power plants to require over 9 lakh MW of capacity by 2031-32, with significant contributions from fossil fuels and thermal sources.
In the National Electricity Plan 2022-32 (NEP), energy demand is expected to grow annually by 6.2%, with peak demand forecasted to reach 277 GW in FY27 and 366 GW in FY32.
Although power generation from green energy sources rose from 292 billion units in FY21 to 421 billion units in FY23, renewables cannot meet base load requirements. Thermal energy remains the efficient solution for addressing peak demand loads.
According to the data of Niti Aayog, 2.83 lakh MW will be required from coal-based energy, while the installed capacity will be 2.17 lakh MW. According to the Central Electricity Authority, to produce power from coal at this scale, 80,000 MW of energy would be required by 2032.
According to the National Electricity Plan, the projected capex for commissioning coal-based power for 2031-32 is Rs 6.67 lakh crore. However, considering the per megawatt expenditure rate, around Rs 5.07 lakh crore can be allocated for projects in advanced stages.
The Ministry of Power plans to add at least 53.6 GW of coal-fired power capacity by March 2032, in addition to the 26.4 GW currently under construction. Coal currently contributes to over 50% of India’s installed capacity of 428.3 GW.
Here are the key companies poised to contribute to achieving 53 GW of coal power generation by 2032.
NTPC Ltd
NTPC is India’s largest integrated power utility, contributing 25 percent of the country’s power requirement.It has a presence in the entire value chain of the power generation business. The company produces electricity and sells it to state power utilities on a wholesale basis.
During Friday’s trading session, NTPC Ltd’s share closed at ₹368.40 per share, marking a decrease of 0.42% on the stock exchange.
Tata Power Company Limited
Tata Power currently operates multiple coal-based thermal power plants throughout India, boasting a total installed capacity of approximately 7,096 MW. The company is set to invest Rs. 12,550 crore in constructing two pump hydro projects, collectively generating 2,800 MW, expected to be operational by FY2028.
Recently, Tata Power unveiled plans to ramp up its capital expenditure for FY25 to Rs 20,000 crore, a significant 66.67% surge from the Rs 12,000 crore spent in fiscal 2024. Nearly half of this amount, Rs 10,000 crore, will be allocated to the renewables portfolio
The remaining funds will be allocated to other sectors, including investments in the existing generation portfolio, such as initiating work in the pump hydro storage space. Additionally, the company aims to finalize the fuel gas desulfurization projects required for its coal-based plants.
During Friday’s trading session, Tata Power Company Limited’s shares closed at ₹448.60 per share, marking a decrease of 0.80% on the stock exchange.
Adani Power Limited
Adani Power Limited is currently the largest private thermal power producer in India, boasting an operational thermal power generation capacity of 15,250 MW.
The company is presently undertaking a 1,600 MW (2×800 MW) expansion project at its Mahan plant in Singrauli, Madhya Pradesh, utilizing ultra-supercritical technology.
On Friday’s trading session,Adani Power Limited Limited’s share closed at ₹746.90 per share, reflecting a decrease of 0.92% on the stock exchange.
JSW Energy Limited
JSW Energy presently operates a thermal power generation capacity of approximately 3,508 MW. Furthermore, it is constructing a 700 MW thermal power plant at Ind-Barath, Odisha. By 2030, the company targets having thermal power to contribute around 28% of its total installed capacity
On Friday’s trading session, JSW Energy Limited shares closed at ₹683 per share, reflecting an increase of 3.61 % on the stock exchange.
Written by Omkar Chitnis
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