Editorial 2: The reform India’s power sector needed
Context:
Removal of restrictions on thermal power plants provides respite to consumers.
Introduction
- In 2015, the Union Ministry of Environment, Forest and Climate Change notified SO2 norms for coal-based thermal power plants. The establishment of flue gas desulphurisation (FGD system) for all 600-odd power plants in the country was made compulsory. Flue Gas Desulphurisation (FGD) is an emission-control technique used to eliminate Sulphur Dioxide (SO₂) from the flue gases released during the burning of fossil fuels, particularly coal.
- The primary objective of FGD is to curb SO₂ emissions, which significantly contribute to acid rain and airborne particulate pollution, posing serious threats to agriculture, ecosystems, infrastructure, and public health.
Assessing the Need and Impact of Flue Gas Desulphurisation in India
- The implementation of Flue Gas Desulphurisation (FGD) systems in thermal power plants faced challenges due to both technical and financial concerns. Experts, researchers, and power sector professionals questioned the necessity of FGDs, given the low sulphur content in Indian coal. Despite this, installation began in several plants.
- The capital cost was significant, with an estimated tariff increase of ₹0.25–0.30 per kWh — a burden ultimately passed on to power distribution companies and consumers.
- Beyond financial implications, the technical need for FGDs in all plants remained unclear. A study by the Ministry of Power and IIT Delhi highlighted the requirement for a more detailed assessment of SO₂ emissions and whether a uniform FGD mandate is essential across India’s thermal power sector.
Revisiting Norms: Findings from NEERI’s Study
- A comprehensive study commissioned by NITI Aayog and conducted by NEERI concluded that ambient SO₂ concentrations remain well below the prescribed norm of 80 µg/m³, even in areas where FGDs are not installed.
- The report recommended revisiting India's stack emission norms, considering unique geographical and climatic factors—such as high solar insolation, strong vertical air mixing, and greater ventilation—unlike temperate countries.
- Additionally, the study highlighted that FGD systems, which use limestone and water, have environmental costs, including a large carbon footprint from limestone mining and transport. Since CO₂ has a longer atmospheric lifespan than SO₂, the study calls for a balanced and context-specific approach to emission control rather than a one-size-fits-all mandate.
Revised FGD Norms: A Targeted and Cost-Effective Approach
- The revised notification does not mandate a complete withdrawal of FGD. It is now based on sound scientific studies and analysis, which have enabled 600-odd power plants of the country to be classified into three categories — those which are close to very large cities, the ones in heavily polluted areas, and others.
- Studies reveal that around 78% of plants do not require FGD systems, leading to significant savings in capital expenditure.
- These savings can be redirected towards expanding power generation through renewable sources. The revised norms also help prevent undue tariff burdens on consumers, ensuring a more balanced and sustainable energy transition.
Conclusion
In India’s long-term energy transition plan, renewables will play a big role. However, the transition will need to respect energy security considerations. Domestic coal will, therefore, continue to play a meaningful role in the coming few decades. The notification not only provides relief for consumers at large, but also provides clarity on how to plan for domestic coal-based power.