In a recent discussion with Power Line, K. Shanmugha Sundaram, director (projects), NTPC Limited, and Pankaj Kumar Gupta, general manager (energy transition and policy research), NTPC, reflected on the remarkable advancements in India’s power sector over the past year. India has reached an installed capacity of ~ 448 GW as of July 31, 2024, and has achieved the significant milestone of coal’s share falling below 50 per cent for the first time. The country also met a record maximum power demand of 250 GW on May 30, 2024. Power generation in India in FY 2023-24 logged a 7.04 per cent growth to ~ 1,738 BUs. The country has achieved notable progress in expanding renewable energy capacity, which now stands at ~ 197 GW. NTPC’s role has been pivotal, contributing substantially to both power generation and capacity expansion. Sundaram and Gupta also delved into NTPC’s initiatives for enhancing its thermal fleet’s environmental performance, challenges and the future outlook for India’s energy transition…
What has been the progress in the power sector over the past one year? What have been the major milestones?
India’s power sector has made significant strides, becoming the third largest producer and consumer of electricity globally, with a capacity of ~ 448 GW as of July 31, 2024. Coal’s share in the energy mix dropped below 50 per cent for the first time in 2023-24, while renewables reached ~ 197 GW, making up 43.9 per cent of the total installed capacity. Power generation grew by 7.04 per cent year on year, with non-fossil fuels contributing 23.7 per cent of the overall power generation in India. On May 30, 2024, India met a record power demand of 250 GW. NTPC, which holds a 17 per cent share of India’s installed capacity, contributed 24 per cent of the total power generation, achieving 422 BUs in FY 2023-24, a growth of about 6 per cent year on year. NTPC also added 3,924 MW in FY 2023-24, taking its total installed capacity to 76 GW.
NTPC is actively pursuing initiatives for cleaning and greening its thermal fleet, including biomass co-firing, flue gas desulphurisation (FGD) systems and combustion modifications for nitrogen oxide (NOx) reduction etc. Additionally, NTPC is conducting research and development on carbon capture for the synthesis of green chemicals such as ethanol, methanol and urea, etc as well as exploring methanol and low-carbon fuel firing in coal and gas plants. Biomass co-firing plays a key role in decarbonising thermal power and reducing air pollution from stubble burning, with each percentage of co-firing proportionately cutting carbon emissions. To achieve a higher percentage of biomass co-firing without any major modifications in the existing system, the possibility of using torrefied biomass was explored by the Energy Transition and Policy Research Division of NTPC Engineering. NTPC’s milestone achievements include a successful 20 per cent torrefied biomass co-firing at the Tanda thermal plant, a first in the Indian power sector. The company is also pioneering hydrogen, energy storage and climate-friendly waste usage initiatives, including the establishment of a waste-to-charcoal plant in Varanasi.
To support the energy transition and security, the Ministry of Power has introduced several new policies and plans, including the revised biomass policy, waiver of inter-state transmission system charges for green projects, the National Green Hydrogen Mission, viability gap funding for battery storage systems, renewable purchase obligations, measures to improve discoms’ financial health, etc.
What are the key challenges that remain 
unaddressed?
Renewable energy capacity growth: The following factors may pose significant challenges hindering the fast-paced growth of renewable energy capacity in India:
Supply chain disruptions: Renewable energy projects rely on a complex supply chain for equipment and materials. Disruptions in the supply chain, whether due to geopolitical tensions, trade disputes, etc., could lead to delays in project execution and cost overruns.
Infrastructure constraints: Developing renewable energy infrastructure requires substantial investment in land, transmission lines and equipment for grid integration. Challenges related to land acquisition, availability of land for such huge renewable energy capacity, regulatory approvals and grid reliability can delay project timelines and increase costs heavily.
Lack of indigenous manufacturing capabilities: Adopting solar, wind and green hydrogen production requires significant technological expertise and investment. Lack of indigenous manufacturing capabilities/import dependence can create a significant challenge for achieving renewable energy capacity addition targets.
Grid stability challenges: Renewable energy sources being non-despatchable would require flexible generation sources to absorb renewable energy generation variability and intermittency to ensure grid security. Further, renewable energy generators have limitations on providing inertia and short-circuit power, which are the key elements for grid stability.
Cost-effective storage solutions: Effective round-the-clock renewable power (renewable energy plus storage) is crucial for meeting power demand from renewable sources. There is an urgent need to develop energy storage solutions, including long-duration and seasonal options, based on resource potential, technology maturity and effectiveness of integrating variable renewable energy. Potential options include pumped storage hydro, concentrated solar power, battery energy storage solutions (BESS), and green hydrogen, etc.
Flexible operation of thermal units: To integrate variable renewable energy, coal-based plants must regulate generation to maintain grid balance, often operating at minimum capacity with frequent load fluctuations. This reduces efficiency and lifespan, and increases costs. A policy for compensating the additional cost and incentivising flexible operation shall be required for the flexible operation of these plants.
Non-availability of gas: The Indian government has prioritised the allocation of domestic gas to the city gas distribution sector. Due to high reserve prices and stringent terms and conditions, the power sector has been unable to secure new domestic gas from the Krishna Godavari Basin. Gas stations are dependent upon costlier regasified liquefied natural gas (RLNG) for declaring capacity/generation, however, a consistent RLNG generation schedule is not available.
Ash utilization: As per new environment norms, all plants must achieve 100 per cent ash utilization within a stipulated time period. NTPC has undertaken various initiatives, including the use of bottom ash in place of sand, and developed novel products such as nano concrete aggregate (NACA), precast elements and paver blocks using NACA.
Water management: The integration of variable renewable energy sources into the grid is lowering thermal plant load factors, increasing per unit water consumption. The installation of wet FGD systems also poses challenges in reducing water consumption. However, NTPC’s initiatives such as air-cooled condensers (ACC), sewage treatment plant water use and zero liquid discharge have reduced specific water consumption to 2.68 litres per kWh, below the 3 litre per kWh norm.
How do you rate India’s energy transition so far? What more needs to be done?
India’s energy transition has made notable strides. The country met its 2015 Nationally Determined Contribution (NDC) targets – reducing GDP emissions intensity by 33-35 per cent and achieving 40 per cent non-fossil fuel power capacity – well ahead of schedule. India’s updated NDC now commits to a 45 per cent reduction in GDP emissions intensity and 50 per cent non-fossil fuel power capacity by 2030.
India is pioneering a new model of economic development by catering to energy needs with low-carbon energy sources. This new model can provide a blueprint for other developing economies. Renewable electricity is growing at a faster rate in India compared to any other major economy, and the country is well on track to achieve the 500 GW non-fossil fuel-based capacity target by 2030. However, several challenges remain in achieving the net zero emission targets. The following areas require additional focus:
Development of grid infrastructure: The existing grid infrastructure needs to be upgraded to handle the variability of renewable energy sources. Investment in transmission/distribution infrastructure, smart grid, storage and grid stability solutions are crucial for integrating more renewable energy and ensuring a safe and resilient grid.
Promoting financing and investment in renewable energy and storage: Despite the already substantial investments, significant investment is still required in renewables as well as storage solutions (BESS, pumped storage plants, concentrated solar power, etc.) for increasing the generation percentage from renewable energy. Favourable policies/investment mechanisms are required to ensure stable financing and reduce the risks associated with green energy projects.
Reducing CO2 emissions from thermal plants: India’s energy mix still relies heavily on coal. While renewable energy is growing, coal plants continue to play a significant role. Therefore, decarbonising thermal plants is crucial for achieving net zero emission targets. Possible pathways include biomass co-firing, use of low-carbon fuels and adoption of a circular economy. With advancements in technology, carbon capture and utilisation can play an important role in reducing CO2 emissions from thermal plants. In addition, high efficiency low emissions (HELE) technologies such as ultra supercritical should be adopted in all new thermal power plants.
Alternate fuels for gas turbines: Gas turbines can play an important role in variable renewable energy integration due to their fast startup and ramp-up/down times. Additionally, gas turbines produce comparatively lesser emissions compared to coal-based plants. However, most gas plants in India are idle due to the non-availability/higher cost of gas. Therefore, it is necessary to explore alternative fuels that can be fired in gas turbines for effective utilisation of these assets.
Adding nuclear capacity/SMRs: Nuclear power is a clean and environment-friendly base load source of electricity generation. The expansion of nuclear capacity can play a significant role in the country’s energy transition for meeting the goal of a net zero economy. Small capacity atomic power plants, commonly known as small modular reactors (SMRs), offer an attractive option for providing reliable and continuous power supply due to their modularity, scalability, small footprint and improved safety. Therefore, the installation of SMRs should be prioritised.
Energy efficiency: Improving energy efficiency across industries, buildings and transportation is critical for reducing overall energy consumption and emissions.
What is the sector outlook for the next one to two years?
India’s power generation is set to expand significantly due to anticipated GDP growth over the next two decades, with peak load demand and energy requirements rising rapidly. The goal of 500 GW non-fossil fuel capacity by 2030 will significantly alter the generation mix, presenting challenges related to integrating intermittent renewables and ensuring grid stability. The Central Electricity Authority estimates that peak demand will reach 366 GW by 2032, necessitating an additional 80 GW of coal-based capacity by 2031-32, including 28 GW currently under construction.
Out of the 80 GW, NTPC is expected to add around 25 GW of coal-based capacity, including 9.5 GW under construction, all of which is planned to be commissioned by 2031-32. As part of the plan, in 2023-24, orders have been placed for 3,200 MW of coal-based capacity at the Singrauli-III super thermal power plant (STPP) and Lara-II STPP. Further, tenders have been issued for 10.4 GW of capacity, which are expected to be placed in 2024-25, while orders for the remaining capacity are expected to be placed in the following year. All new capacity additions have been planned as brownfield projects and will use HELE technologies primarily (ultra supercritical). NTPC’s fossil and non-fossil mix is expected to be approximately 60:40 by 2032. Additionally, a joint venture between NTPC and Bharat Heavy Electroicals Limited will implement a full-scale 800 MW commercial plant using advanced ultra supercritical technology (AUSC).
NTPC is also making big moves in nuclear power, with a 2.8 GW capacity project in Rajasthan through ASHVINI, a joint venture between NTPC and Nuclear Power Corporation of India Limited.
To address challenges presented by climate change, NTPC is actively diversifying its portfolio beyond traditional sources, with our renewable energy installed capacity reaching 3.6 GW. By investing in renewables and storage solutions, with over 11 GW of renewable energy and hydro projects under construction and a strong pipeline of over 20 GW in various stages of tendering, NTPC is taking significant steps towards becoming a fully integrated clean energy provider. We are well poised to achieve the committed 60 GW of renewable capacity by 2032. We are constantly evolving and developing new strategies and business models to fast-track renewable capacity addition.
To achieve the net zero emission targets and ensure reliable, sustainable and affordable power, India’s power sector will require a multipronged approach. This includes adding renewable energy sources, implementing commercially viable storage solutions, optimising the cyclical operation of gas-based power plants, enhancing hydro generation, decarbonising existing thermal plants, using HELE technologies for new thermal plants, incorporating nuclear power/SMRs etc.