{"id":48984,"date":"2025-07-23T19:02:36","date_gmt":"2025-07-23T13:32:36","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=48984"},"modified":"2025-07-29T13:30:50","modified_gmt":"2025-07-29T08:00:50","slug":"india-power-sector","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/editorial-analysis\/23-07-2025\/india-power-sector","title":{"rendered":"India\u2019s Power Sector: Navigating Energy Needs and Environmental Responsibility"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Energy Infrastructure<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India&#8217;s power sector, long characterized by fragmented regulation, mounting debts, and inefficient distribution, is undergoing vital reforms to meet modern energy needs and ensure sustainable, reliable access for all.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>India\u2019s Power Sector<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Installed Generation Capacity:<\/strong> India is the <strong>third-largest<\/strong> <strong>producer and consumer<\/strong> of electricity worldwide, with an installed power capacity of<strong> 466.24 GW <\/strong>as of January 31, 2025.<\/li>\n\n\n\n<li><strong>India\u2019s Coal Based Energy:<\/strong> It contributes<strong> nearly 55% to the national energy mix<\/strong> and fuels<strong> over 70% of total power generation.<\/strong>\n<ul class=\"wp-block-list\">\n<li>It has the <strong>fifth-largest coal reserves<\/strong> and is the <strong>second-largest consumer.<\/strong><\/li>\n\n\n\n<li><strong>Sulphur Dioxide (SO\u2082),<\/strong> a harmful pollutant associated with respiratory and ecosystem damage, remains a major concern.&nbsp;<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Renewable Energy Growth:<\/strong> India is <strong>among the top nations <\/strong>globally for <strong>solar and wind capacity<\/strong>, aiming for <strong>500 GW of non-fossil fuel capacity by 2030.<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Total Installed Capacity<\/strong> (renewable energy sources, including large hydropower): 209.45 GW (As of December 2024).\n<ul class=\"wp-block-list\">\n<li>Wind Power (48.16 GW); Solar Power (97.87 GW); Biomass\/Co-generation (10.73 GW); Small Hydro (5.10 GW); Waste To Energy (0.62 GW), and Large Hydro (46.97 GW).<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Transmission Infrastructure: <\/strong>The country boasts <strong>one of the world\u2019s largest<\/strong> synchronized power grids, enabling electricity transfer across regions.\n<ul class=\"wp-block-list\">\n<li>India has achieved near-universal electricity access, with over 99% of villages electrified.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"bed0cc\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"584\" height=\"496\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/07\/source-wise-electricity-installed-capacity.png\" alt=\"source wise electricity installed capacity\" class=\"not-transparent wp-image-48985\" style=\"--dominant-color: #bed0cc; width:442px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/07\/source-wise-electricity-installed-capacity.png 584w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/07\/source-wise-electricity-installed-capacity-300x255.png 300w\" sizes=\"auto, (max-width: 584px) 100vw, 584px\" \/><\/figure>\n<\/div>\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"a8b8ba\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"575\" height=\"462\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/07\/source-wise-electricity-generation.png\" alt=\"source wise electricity generation\" class=\"not-transparent wp-image-48986\" style=\"--dominant-color: #a8b8ba; width:435px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/07\/source-wise-electricity-generation.png 575w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/07\/source-wise-electricity-generation-300x241.png 300w\" sizes=\"auto, (max-width: 575px) 100vw, 575px\" \/><\/figure>\n<\/div>\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#ebecf0\"><tbody><tr><td><strong>Flue Gas Desulphurisation (FGD)<\/strong><br>&#8211; MoEFCC mandated the <strong>installation of Flue Gas Desulphurisation (FGD) systems<\/strong> to curb SO\u2082 emissions.<br>1. In 2015, India introduced <strong>revised emission norms,<\/strong> requiring <strong>mandatory FGD installation across thermal plants<\/strong> by 2017.<br>&#8211; It is a <strong>set of technologies<\/strong> used <strong>to remove SO\u2082<\/strong> from exhaust flue gases of fossil fuel plants.<br>&#8211; The<strong> most common method<\/strong> in India is<strong> wet limestone scrubbing<\/strong>, where SO\u2082 reacts with limestone slurry to form gypsum.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Concerns &amp; Challenges<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Coal Dependency:<\/strong> Thermal power remains dominant in India, raising concerns about environmental sustainability and supply fluctuations.<\/li>\n\n\n\n<li><strong>Economic Burden on Consumers: <\/strong>Installing FGD systems entails high capital expenditure, especially for older plants.\n<ul class=\"wp-block-list\">\n<li>Estimates suggested a cost increase of \u20b90.25 \u2013 \u20b90.30 per kilowatt-hour (kWh), which would ultimately affect power tariffs.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Technology Gaps:<\/strong> Many aging plants were not designed for retrofits.<\/li>\n\n\n\n<li><strong>Lack of Indigenous Supply Chains:<\/strong> Dependence on imports slowed progress.<\/li>\n\n\n\n<li><strong>Mixed Compliance: <\/strong>Less than 15% of coal-based capacity had installed FGD by early 2024.<\/li>\n\n\n\n<li><strong>Low Sulphur Content in Indian Coal: <\/strong>Indian coal naturally has low sulphur content.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Scientific Re-Evaluation of the SO<sub>2<\/sub> Norms<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>IIT Delhi and Ministry of Power Study:<\/strong> It stressed the need for a more comprehensive analysis of SO\u2082 emissions across the country.\n<ul class=\"wp-block-list\">\n<li>It recommended reevaluating the need for FGDs based on empirical data rather than blanket policy mandates.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>NEERI-NITI Aayog Report<\/strong>:\n<ul class=\"wp-block-list\">\n<li>Ambient SO\u2082 levels at all monitoring stations were <strong>well below<\/strong> the prescribed limit of <strong>80 \u00b5g\/m\u00b3<\/strong>, despite limited FGD implementation.<\/li>\n\n\n\n<li>India\u2019s <strong>geographical and climatic conditions<\/strong> \u2014 including higher solar radiation, stronger vertical convection, and greater ventilation \u2014 naturally reduce ground-level SO\u2082 concentrations.<\/li>\n\n\n\n<li>The <strong>carbon footprint of FGD systems<\/strong> due to limestone mining, transport, and water usage posed additional environmental concerns.<\/li>\n\n\n\n<li>CO\u2082, a long-lived greenhouse gas, has a greater atmospheric impact than SO\u2082, calling into question the net environmental benefit of mass FGD deployment.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Policy Revision: A Targeted and Balanced Approach<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Based on scientific analysis, the government revised its notification. Key changes include:\n<ul class=\"wp-block-list\">\n<li><strong>Power plants are now categorized<\/strong> into three groups:\n<ul class=\"wp-block-list\">\n<li>Located near large cities;<\/li>\n\n\n\n<li>Situated in heavily polluted zones;<\/li>\n\n\n\n<li>All other plants<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Only plants in the first two categories are required to install FGDs.<\/li>\n\n\n\n<li>Around <strong>78% of thermal power plants are exempt<\/strong>, significantly reducing unnecessary capital expenditure.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Implications for Power Sector and Energy Policy<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Financial Relief: <\/strong>The revised guidelines help avoid avoidable investments in FGD systems, freeing up resources for other critical infrastructure, particularly renewable energy.<\/li>\n\n\n\n<li><strong>Tariff Stability: <\/strong>Consumers and power distribution companies benefit from stable tariffs, shielding them from unnecessary cost escalations.<\/li>\n\n\n\n<li><strong>Balanced Energy Transition: <\/strong>India&#8217;s energy transition roadmap emphasizes renewables. However, <strong>domestic coal<\/strong> will remain essential for ensuring <strong>energy security<\/strong> in the near to medium term. The new notification supports this balanced transition strategy.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Way Forward: Rethinking Implementation<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Phased Implementation: <\/strong>Prioritize high-polluting regions for early adoption.<\/li>\n\n\n\n<li><strong>Hybrid Solutions:<\/strong> Combine FGD with other NOx and particulate control mechanisms.<\/li>\n\n\n\n<li><strong>Updated Deadlines With Accountability: <\/strong>Tie non-compliance to financial penalties.<\/li>\n\n\n\n<li><strong>Funding Innovations:<\/strong> Use green bonds or international aid to support retrofits.<\/li>\n\n\n\n<li><strong>Dynamic Norms: <\/strong>Encourage transition to low-sulphur coal or renewables where feasible.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The revised SO\u2082 emission norms mark a <strong>science-led and economically pragmatic shift<\/strong> in India\u2019s environmental regulation. By aligning policy with empirical research and ground realities, the government has optimized public spending, reduced environmental trade-offs, and created a more sustainable pathway for the energy sector.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#fff2cc\"><tbody><tr><td><strong>Daily Mains Practice Question<\/strong><br><strong>[Q]<\/strong> Critically examine how the adoption of Flue Gas Desulphurisation (FGD) technology in India&#8217;s thermal power sector reflects the country&#8217;s approach to balancing energy security with environmental responsibility.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><a href=\"https:\/\/indianexpress.com\/article\/opinion\/columns\/the-reform-indias-power-sector-needed-10143372\/\" rel=\"nofollow noopener\" target=\"_blank\">Source: IE<\/a><\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.nextias.com\/ca\/wp-content\/uploads\/2025\/07\/UPSC-Editorial-Analysis-23-July-2025.PDF-1.pdf\">Download PDF<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>India&#8217;s power sector, long characterized by fragmented regulation, mounting debts, and inefficient distribution, is undergoing vital reforms to meet modern energy needs and ensure sustainable, reliable access for all.<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[22],"tags":[],"class_list":["post-48984","post","type-post","status-publish","format-standard","hentry","category-editorial-analysis"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/48984","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=48984"}],"version-history":[{"count":4,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/48984\/revisions"}],"predecessor-version":[{"id":49525,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/48984\/revisions\/49525"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=48984"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=48984"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=48984"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}