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India won’t need extra power plants for next three years: government

NEW DELHI: India won't need any new power plants for the next three years as it is flush with generation capacity, according to a government assessment. But, ironically, more than a third of the country's population still lives without power. The country can manage for the next three years with existing plants that are currently under-utilised, and those that are under construction and upcoming renewable energy projects, assessment made by the power ministry for reviewing the National Electricity Policy shows. The policy, originally issued in 2005 as a roadmap to the Electricity Act of 2003, is being altered in the backdrop of changes in the power sector.

"Demand for electricity is not likely to rise substantially in the next three years and hence India is expected to be power sufficient without any addition. This clearly signals that any thermal power plant that is yet to begin construction should back off," a power ministry official said. A survey released on Monday by Assocham and PwC said once demand begins to overtake supply, India's power deficit may rise to 5.6% in 2021-22 from 2.1% now. "Need of the hour is to find ways to utilise capacity already created and in the pipeline rather than add to backlog," said Ashok Khurana, director-general of Association of Power Producers. "We should start building our coal-fired thermal assets now. When demand increases post-2020.