National Electricity Plan (2022-27): Coal-fired projects back on, mega lithium battery storage push

What’s in today’s article?

• Why in News?
• What is the National Electricity Plan?
• What are the Key Highlights of the National Electricity Plan 2022-27?
• What are the Options Available as per the 2022-27 Plan?
• What are the Challenges Ahead?

 

Why in News?

• A new blueprint for the country’s power sector planners - the National Electricity Plan (NEP) 2022-27 - marks a discernible reversal in the policy thrust from its last edition.
• Earlier the focus was almost entirely on renewable energy for incremental capacity addition and fresh coal-fired capacity was virtually ruled out.

 

What is the National Electricity Plan?

• The Electricity Act 2003 stipulates that the Central Electricity Authority (CEA) shall prepare a National Electricity Plan in accordance with the National Electricity Policy and notify such plan once in 5 years.
• This is -
  • To formulate short-term (5-year) and perspective plans (15-year) to assess the demand for planning capacity addition
  • To coordinate the activities of various planning agencies for the optimal utilization of resources
  • To sub serve the interests of the national economy.
• The first Plan was notified in 2007, 2nd in 2013 and the third National Electricity Plan (notified in 2018) covers the detailed Plan for 2017-22 and perspective Plan for 2022-27.

 

What are the Key Highlights of the National Electricity Plan 2022-27?

Image Caption: Installed Capacity in India

• The coal energy thrust: The fresh draft, in a tacit admission of the ground realities, cites the need for fresh coal-based capacity ranging from 17 GW to nearly 28 GW till 2031-32.
  • This would be over and above an under-construction coal-based capacity of 25GW (1 giga watt or GW is equal to 1000 megawatts or MW).
  • An increase in the plant load factor (PLF) of coal fired plants from 55% up to 2026-27 to 62% in 2031-32
• The renewable energy thrust: A projected battery storage requirement in 2031-32 of between 51 GW to 84GW with a daily usage rate of 5-hours.
  • Estimated to be Rs 10 crore per MW, this could translate into investments into battery storage between Rs 5 - 8 lakh crore over the next ten years as backup for renewable capacity.

 

 

What are the Options Available as per the 2022-27 Plan?

• Battery Energy Storage systems (BESS) especially based on Lithium - ion batteries are one of the storage options.
  • The cost of the BESS is reducing in an unprecedented way making it one of the preferred options for deployment.
  • BESS has various advantages of balancing the grid against load fluctuations, intermittency in generation etc.
  • Energy storage can provide energy time-shifting which can be useful with the large-scale deployment of variable renewable energy sources.
• The hybrid generation models. This will basically perform solar energy shifts and provide backup power.
• The water-based systems, where no barrage on the river is required (economical).
  • During charging the water is lifted to the reservoir and during discharge the water generates electricity.
  • It’s a closed water cycle with 6% evaporation loss and the water cycle efficiency is 70%.

 

What are the Challenges Ahead?

• The continued reliance on old, inflexible coal-fired plants for base load capacity.
  • India’s vast fleet of coal-fired thermal power plants of 200 MW series are more than 25 years old, run-on old technology and do not promise robust reliability.
• Lack of clarity on how the renewables-dominated grid will be actually managed, despite a pronounced reliance on renewable generation for meeting capacity additions.
• The inertia, which imparts stability to the grid, has been declining due to poor progress of hydro power and zero inertia solar generators.
• There is also no assessment of ramping rate for thermal plants under various scenarios of solar generation going out.
• If battery storage is to be relied on, the total fund requirement for the period 2022-27 is estimated to be Rs. 14.30 lakh crore.
  • However, the CEA report has given a budget of 8 lakhs crore for BESS for a 10-year period.

 

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Q1) What is the Electricity Act of 2003?

Enacted to transform the power sector in India, the act covers major issues involving generation, distribution, transmission and trading in power.

 

Q2) What is the Central Electricity Authority of India (CEA)?

It is a statutory organisation constituted under the Electricity Act 2003 to advise the government on policy matters and formulates plans for the development of electricity systems.

 

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Source: Coal-fired projects back on, mega lithium battery storage push in new power policy blueprint