India’s dependence on thermal power will reduce to 50 per cent by 2021-22 and 43 per cent by 2026-27 on the back of renewable energy (RE) capacity additions, a report said. Thermal power includes diesel, gas and coal-based electricity generation which contributes 63 per cent of total electricity generation capacity in India as per the report.
“India is chasing ambitious RE targets and enhancing its T&D (transmission & distribution) infrastructure. Increasing RE use is decreasing dependence on coal. Contribution of the thermal sector will reduce to 50 per cent by FY22 and 43 per cent by FY27,” said a report by Praxis Global Alliance and Zetwerk
According to the report the installed power generation capacity has increased at 8.6 per cent CAGR over the period FY12-FY19 and renewable energy is growing at the fastest pace. New private investment in the generation sector is expected to be largely in the renewable sector, it added.
The report showed that owing to past bad experiences, long-term PPAs (power purchase agreement) in thermal power are unlikely to pick-up in the future.
Renewables sector is likely to continue with long-term PPAs, it added.