Towards a less polluting power sector
The Indian power sector being one of the prime sources of emissions is presently going through a major transformation to ensure their reduction.
The reform measures introduced by the Government in the form of new environment norms are on a par with the best in world.
These reforms along with the finalisation of new norms of efficiencies, encouraging wind and solar power, focusing on e-mobility solutions, and so on are expected to have a wide socio-economic impact and change the industry dynamics.
While these are noteworthy efforts, the per-capita consumption of electricity in the country is still much less than the world average. While India has rightly increased its efforts to reduce emissions, there is a need to increase its efforts to provide power for all through both, benign renewable production of electricity and thermal plants with reduction in emissions.
Reduction in emissions certainly has its own challenges in terms of cost, logistics, land, technology, marketing of by-products, water and finally competitiveness.
With India’s commitment to climate change mitigation and growth in renewable energy sources in the next decade, the energy mix is likely to significantly alter.
This would also impact the cost of electricity. Affordability of power is a key driver towards its demand, which in turn influences the GDP of the country.
As implementation of the revised environment norms is expected to have a bearing on the cost of power generation, it is necessary that the cost of mitigating environment measures is also optimised.
According to initial estimates, the capital expenditure to implement new norms would be between ?70 lakh and ?1 crore per megawatt of power generation capacity.