Overbuilding coal capacity is not the solution

The document outlines strategies for India's power sector transition, emphasizing the need to improve coal plant flexibility, reform power purchase agreements, and scale up energy storage to manage solar integration and grid reliability.

• India should improve the technical flexibility of its coal fleet by mandating that plants operate at a minimum technical load (MTL) of 40%, down from the current 55% benchmark, and implementing compensation mechanisms for generators and purchasers.
• To adapt to a changing power sector, Distribution Companies (DISCOMs) should shift from 25-year long-term power purchase agreements to short- or medium-term contracts of approximately 3 to 5 years.
• Integrating state-level thermal generators into the central optimisation pool would increase the thermal capacity available to balance the midday solar surge and allow for more efficient economic dispatch.
• Current storage volumes assumed in the National Electricity Plan (NEP) are insufficient for planned solar growth; without increasing storage and ring-fencing capacity for ancillary services, the system faces estimated renewable curtailment of 2.5–3.8%.
• Policy reforms are needed to better compensate energy storage for its superior frequency response and reserve provision, specifically through Secondary Reserve Ancillary Service (SRAS) and the reduction of emergency Tertiary Reserve Ancillary Service (TRAS).

APA

Ember (2025). Overbuilding coal capacity is not the solution. https://ember-energy.org/chapter/recommendations-2/

Chicago

Ember. Overbuilding coal capacity is not the solution. 2025. https://ember-energy.org/chapter/recommendations-2/.

Wikipedia

{{cite report |author=Ember |title=Overbuilding coal capacity is not the solution |date=29 October 2025 |url=https://ember-energy.org/chapter/recommendations-2/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ember2025overbuilding, author = {{Ember}}, title = {{Overbuilding coal capacity is not the solution}}, institution = {Ember}, year = {2025}, month = oct, url = {https://ember-energy.org/chapter/recommendations-2/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }