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CEA’s ‘Report on Optimal Generation Mix 2030’

2023 MAY 13

Preliminary   > Economic Development   >   Indian Economy and Issues   >   Energy

Why in news?

  • Recently, The Central Electricity Authority (CEA) has released an updated report titled Report on Optimal Generation Mix 2030 Version 2.0.

Key Findings:

  • India generated 73 % of its power from coal in 2022-23.
  • India’s share of capacity from non-fossil sources such as small hydro, pumped hydro, solar, wind and biomass will be 62 % by 2030. The share will be 64 % if nuclear power is considered.
  • The generation of renewable sources is expected to rise to 31 % in 2030 from 12 % currently.
  • Solar and wind energy:
    • In 2022-23, India generated only 173 BU from solar and wind energy for its basic power needs.
  • Natural gas:
    • The contribution of natural gas to power generation remains small.
  • Coal plants:
    • 2,121.5 MW is considered for likely retirement by 2030, of which 304 MW will be retired during 2022-23.
    • Coal power will rise in absolute terms between 2023 and 2030 by 19 % in terms of capacity and by 13 % in terms of generation.
  • Storage capacity:
    • 60 GW of storage capacity will be required by 2030, from both pumped hydro and battery storage,
    • It is required to store excess renewable generation and meet peak demand (typically in the evenings), which often does not coincide with peak renewable generation such as solar.
  • Green hydrogen:
    • India’s green hydrogen aspirations will lead to an additional energy requirement of 250 BU by 2030.

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Power Sector: India v/s World:

  • Power demand in 2030:
    • Expected power demand of India in 2030 will 2,279 billion units (BU), which 7% of world’demand
  • Carbon emission from power sector:
    • The power sector contributes about 40 % of India’s total greenhouse gas emissions.
    • Power sector emissions of India are projected to rise from 1.002 gigatonnes of carbon dioxide (GtCO2) in 2021-22 to 1.114 GtCO2 in 2030.
    • With the increase India will contributing 10% of total world’s CO2 emissions from the power sector in 2030.
  • Per capita CO2 emissions from the power sector
    • On a per capita basis, India will be having only half the world average even in 2030. India’s per capita CO2 emissions from power sector will be 0.7 tonne in 2030.

PRACTICE QUESTION

Consider the following statements:

1. Currently in India, majority of the power is generated from coal

2. The power sector contributes around 40 % of India’s total greenhouse gas emissions.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer

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