The report mentioned that over 4,000 megawatts (MW) of coal plant capability owned by the Maharashtra State Power Generation Company can be retired by 2022.
It added that older coal plants are much less environment friendly and extra polluting, and might want to meet the 2015 air and water emission norms notified by the Ministry of Environment, Forests and Climate Change by 2024 on the newest.
Instead of retrofitting, retiring Bhusawal Unit 3, Chandrapur Units 3-7, Khaparkheda Units 1-4, Koradi Unit 6 and seven, Nashik Units 3-5 will save about Rs 2,000 crore in averted prices, its lead analyst Ashish Fernandes mentioned.
He added that changing the scheduled technology from these old items with cheaper renewable electrical energy will save one other Rs 1,600 crore yearly.
“The power surplus situation in the state and country, as well as the advent of cheaper renewable energy, allows the state government a significant room to retire these end-of-life assets and generate savings which will benefit the discom and consumers,” he added.
The report by the group added that Maharashtra’s coal fleet has been working below-55 per cent plant load issue (PLF) for the final 4 monetary years, even earlier than the pandemic-induced hunch in financial exercise in 2020-21.
PLF is the ratio of common energy generated by the plant to the utmost energy that might have been generated in a given time.
The process of retiring old plants is less complicated as a result of the unconventional vitality coverage is aiming so as to add over 17,000 MW of energy in the state, whilst Maharashtra is predicted to have an influence surplus of 15 per cent until 2025 as per the native regulator’s calculations, he added.
The financial savings generated can be used to enhance efficiencies in the electrical energy system, additional decreasing subsidy payouts from the federal government to Maharashtra State Electricity Distribution Co (MSEDCL), liberating up assets for different priorities in the well being and infrastructure sector, the report steered.
The re-allocation of coal assets after the retirement of the old items will convey down the coal transport invoice to Rs 627 crore yearly from the present Rs 927 crore.
Apart from shuttering of the old items, it additionally pitched for discontinuing the Rs 3,158 crore venture to construct a brand new unit at Bhusawal. There is “no economic rationale” for the unit, and if accomplished, MSEDCL might be compelled to pay excessive mounted price prices regardless of low demand for energy, it added.
A ten-year transition to a renewable vitality dominated electrical energy system can save the state hundreds of crores by way of lowered energy buy prices, it mentioned including that this alone can result in financial savings of as much as Rs 62,000 crore over a five yr interval.
“The COVID-19 pandemic has hit both MSEDCL and state government finances. As the government explores ways to cut costs and improve financial health, retiring old coal plants should be part of the mix,” he mentioned. AA HRS hrs