According to a study by BMI Research, India is all set to overtake Japan and become the second largest power capacity in Asia this year. In its report analyzing India’s power capacity, Bloomberg came up with this estimate for 2018. It also noted that India’s power capacity will increase by a whopping 69% through 2027. This significant increase in power generation has been attributed to the increase in coal-fired power.
The study notes that India will have an estimated power capacity of 363.32 gigawatts in 2018. The reported also noted that India is likely to overtake the United States, which is the second largest power producer in the world, by the year 2020.
As of now, over 85% of the power generated in India is through coal. However, the future scenario is likely to change with the advent of wind and solar energy. It must be noted that solar energy is now cheaper than coal. Despite all this, the research by BMI report notes that coal-fire energy will continue to remain dominant over the next decade contributing up to 75% of the mix by 2027.
Though coal will remain the dominant force in energy production, India is also stepping up its efforts to increase renewable energy capability. The country’s National Energy Plan released in December 2016 set a target of 56% for non-coal based power generation by the year 2027. Moreover, India has also committed to installing 175 gigawatts worth of renewable energy capacity by the year 2022 according to the Paris Climate Agreement.
The NDA government’s Saubhagya scheme targets electrification of all households in the country. The government has also officially announced 100% electrification of villages in the country. Considering all this, power demand in the country is all set to surge in the future. This demand is likely to be met by a combination of coal-based energy and renewable energy from different sources.