India will soon overtake Japan to have Asia’s second-largest power capacity, new data shows.
According to data revealed by BMI research, India’s progress in power capacity has been attributed by rapid rollout of coal-fired power generation plants. Research shows India will have a power capacity of 363.32 gigawatts in 2018,
India’s capacity will increase by a whopping 69% through 2027 and coal will remain the mainstay, making up about 75% of the mix, the report said.
By 2020, India is expected to surpass even the United States, which is the second largest producer in the world. The government recently achieved the historic target of 100% village electrification. Under Prime Minister Narendra Modi’s flagship Saubhagya scheme, the government aims to provide electricity to all households. This means an uptick in domestic demand for power in coming years, which is expected to be met by coal-fired power generation and by tapping abundant renewable resources.
“India’s power sector will remain dominated by coal over the coming decade despite significant growth in cleaner sources – notably nuclear, non-hydro renewables and natural gas,” an analysis by BMI research said last year. India’s power sector will remain dominated by coal over our 10-year forecast period, with coal making up a share of just less than 70 per cent to the total power generation mix by 2026.
“Despite the prevalence of coal-fired power generation, we expect significant growth in alternative, cleaner power sources over the next 10 years – albeit from a lower base – notably in the natural gas, nuclear and non-hydropower renewables sectors,” BMI research notes.
“This is in line with government efforts to reduce pollution across the country and international pressure to boost environmental policy,” it added.