Coal-based power plants are predominantly reining in India’s power mix. In the financial year 2016-17, 80% of the total power was generated through coal-based thermal power plants, which proves the dominance of coal in the power sector.
Recent studies show that the renewable energy has become cheaper an option in the energy segment, as the cost of setting up of solar or wind power generation plant is much dearer than the running cost of most of the existing coal-based power plants.
In last two years, the cost of renewable energy has fallen about 50% and the downward trend is still continuing. It can be noted that the solar and wind power prices are now almost 20% cheaper than the average wholesale price of coal-fired power plants.
As anticipated, the demand of power in India will be almost double in next decade and to meet the huge demand, the National Electricity Plan (NEP) made the call for rising renewable energy capacity to meet the 275 gigawatts (GW) capacity by the year 2027, without any coal-fired plant.