Don’t retire old units, CEA tells power firms

CHENNAI: Given the surge in power demand post-pandemic, the Central Electricity Authority (CEA), the technical arm of the Union Ministry of Power, has directed the power generation companies not to retire any thermal power units till 2030 and has proposed renovation, modernisation and life extension of 149 older units with a total capacity of 38,360MW, including 12 units of Tangedco with a capacity of 2,520 MW.

“The country is witnessing a huge power/energy demand post-pandemic which is projected to surge in the coming summer of 2023 and beyond. Thus meeting the power demand during the non-solar peak period can be a challenge by 2030. The focus on renewable energy (RE) has led to a reduction in investment in coal-based power plants. Life Extension (LE) of old coal-fired units can help to bridge the gap in the shortage of installed capacity by 2030,” CEA wrote to the power generation companies.

It said the role of old coal-fired power becomes crucial in meeting power/energy demand. “Further, the renovation and modernisation (R&M) of coal-fired power plants are essential for a sustainable, stable and low-carbon supply of electricity. It needs to be highlighted that the R&M of coal-fired units are a cheaper and cost-effective solution in comparison with the new addition of thermal capacity for meeting the surging power/energy demand,” it noted.

CEA has identified 149 thermal units with a total capacity of 38,360 MW for renovation and modernisation and life extension. As per the plan, in the first phase, all the units over 30 years would be under the R&M and LE by December 2026. In the second phase, those thermal units between 25 years and 30 years should undergo R&M by December 2028 while the units between 20 years and 25 years would complete the process by December 2030.

Under the CEA’s phased plan, Tangedco’s Tuticorin (1050 MW) and Mettur Thermal Stations (840 MW) should undergo R&M in the first phase by 2026 and North Chennai Stage I (630 MW) by 2028.

A senior Tangedco official said that, unlike other states, it has 8,340 MW of thermal power generation capacity under various stages of construction.