Over the last 12 months, coal-fired power projects worth 46GW were cancelled in India. Over 600 GW of coal projects have been cancelled since 2010, according to the latest findings by the Institute for Energy Economics and Financial Analysis (IEEFA). The report says lenders are refusing to fund these projects as they are at increased risk of becoming non-performing assets.
The author of the report Kashish Shah said the latest data from Global Energy Monitor (GEM) showed huge non-performing assets in India’s thermal power sector. With 46 GW of cancellations till January 2020, only 37GW are left under construction. The report said the government was wrong as it told parliament that 62.2 GW of coal-fired power plants were under construction.
“GEM’s data shows an additional 29 gigawatts of coal-fired power under various stages of pre-construction development, but they are not under construction. These proposed projects will most likely not see the light of day, if the last ten years are any indication. This has stark implications for bankers, lenders and developers feeling the pain of the ongoing stress in India’s thermal power sector. As the viability has gone, funding has dried up for new projects.” says Shah.
Shah pointed out that according to GEM data an additional 29 GW of coal-fired power under various stages of pre-construction development, but they are not under construction, and trends indicate, they will most likely not see the light of day. The report said the expensive coal power is not viable, therefore funding for new projects from bankers, lenders and developers has dried up.
IEEFA concluded that without government subsidies, concessional lending, pollution control waivers and concessional tariffs, it is not viable to build new non-mine mouth coal-fired projects in India.
About The Author
You may also like
How India is shifting its nuclear power plans into high gear
“Government support needed for large-scale carbon-capture projects in India”
Cost-reflective tariff key to ending Tamil Nadu’s DISCOM woes
Energy crises, geopolitical tensions set stage for explosive climate talks
What Tata Steel’s attempts to decarbonise tell us
