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India’s NTPC eyes more thermal power capacity

  • Spanish Market: Coal, Electricity
  • 10/06/24

Indian state-controlled utility NTPC plans to issue tenders for the construction of about 15GW of thermal power generation capacity by March 2027 to meet anticipated demand growth. Increased capacity typically boosts coal consumption.

"As part of our overall energy security plans, we are actively considering awarding thermal capacity of 15.2GW in [the] near future. This is in addition to 9.6GW thermal capacity already under construction," the company said.

Of the planned 15.2GW capacity, tenders for 10.4GW will be issued in the current April 2024-March 2025 fiscal year, NTPC said. Tenders for another 3.2GW will be issued in 2025-26, followed by 1.6GW in 2026-27, it added.

NTPC Group had an installed generation capacity of 76GW as of 31 March, up by 3.9GW from the year earlier. It plans to reach 130GW capacity by 2030 through a mix of conventional and renewable energy.

It is expanding thermal power capacity at a time when Indian private-sector utilities have largely stopped developing new coal-fired projects. Indian private-sector utilities, such as Tata Power and JSW Energy, have shifted from developing new thermal generation capacity to focusing on renewables.

NTPC also plans to step up its coal production to partly reduce a reliance on external supplies. It aims to raise coal output to 50mn t/yr over the next three years, up from 34.4mn t produced in 2023-24. It received a record 241mn t of coal in 2023-24, up by 7.6pc from a year earlier to meet rising demand. This also included 9.6mn t of imported coal, down by 34pc from a year earlier.

Government push

India's federal government plans to add about 80GW of thermal power generation capacity by 2031-32 to meet an anticipated increase in power demand, in a boost for future coal consumption.

The country's power demand has increased at an unprecedented rate because of its rapid economic growth. "India needs 24x7 power supply for growth and we are not going to compromise on its availability," India's power ministry said in November 2023. "This power cannot be achieved by renewable energy sources alone. Since nuclear capacity cannot be added at a rapid pace, we need to add coal-based thermal capacity." The ministry urged the power industry to plan for capacity additions over the next 5-7 years.

India will need to increase its coal-fired power generation capacity to 259.6GW by March 2032 from the current 211GW, according to the country's national electricity plan (NEP). The NEP, announced by the Central Electricity Authority (CEA) in May 2023, said India will need to raise its current coal-fired capacity to meet the country's projected peak electricity demand of 2,473.8TWh in 2031-32. The CEA also projects coal-fired capacity rising to 235.1GW by 2026-27.


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09/05/25

Australian firms flag coal phase-out timeline concerns

Australian firms flag coal phase-out timeline concerns

Sydney, 9 May (Argus) — Energy utilities raised concerns that Australia's coal-fired power generation phase-out might be running on an unrealistic timeline, according to submissions to the National Electricity Market (NEM) review consultation process. Utilities AGL Energy, Alinta Energy, Delta Energy, Energy Australia, Origin Energy and Stanwell — which operate 10 of the 20 coal-fired power plants in Australia (see table) — submitted separate recommendations to the consultation launched late last year looking at wholesale market settings. This came after the conclusion of the Capacity Investment Scheme (CIS) tenders in 2027, and as Australia transitions to more renewables from its aging coal-fired plants. The Australian Energy Market Operator (Aemo) forecast the country will exit all coal-fired generation by 2038 in its Integrated System Plan (ISP) published in 2024. But Delta Energy predicts that this timeline will not be met, and views ISP's priority as emissions reduction targets rather than a realistic timeline. Insufficient capacity to replace the coal plants was a common issue flagged by these companies, with AGL saying this is partly because of uncertainty in the market leading to less investments. The utility plans to close all its coal plants by the end of June 2035. AGL was Australia's largest emitter of greenhouse gas emissions in the 2024 financial year, according to the Clean Energy Regulator (CER), followed by Stanwell, Energy Australia and Origin Energy. The transition could be supported using flexible dispatchable resources, according to Origin Energy. The coal phase-out means more variable renewable energy (VRE) is required, but VRE output will not necessarily match demand. "The NEM review must also consider the actions to facilitate the planned retirement of coal-fired power stations from the energy system, which will still be occurring in the NEM beyond the CIS," Stanwell warned. "The urgency of developing solutions cannot be overstated, as any indecision now would result in increased government intervention later, and a disorderly and costly NEM beyond the CIS." Gas-fired generation A few firms view gas-powered generation as critical in the transition away from thermal coal and in maintaining system reliability. It will provide back-up in times of renewable droughts, said Stanwell and AGL, and should be noted in discussions of the forward strategy. But Alinta Energy is cautious of the costs of gas-fired power plants, believing them to be the least costly for customers but not economically viable because of their exposure to global gas market prices. Alinta's suggestion is to reduce the market's dependence on high-cost facilities including gas-fired facilities. Mixed views on capacity market Some companies mentioned a capacity mechanism as a solution. Coal-fired facilities should be allowed to continue until they can be replaced, said Alinta Energy, and gas power plants are necessary. Energy Australia and Delta are calling for the NEM to stay technologically neutral in this process, keeping thermal coal exits in mind. A capacity market needs to be sustainable without government subsidies, Alinta Energy said, and exit strategies for government intervention should be clear from the beginning. But capacity markets can lead to higher costs for customers, according to AGL, because of potential over-procured capacity. "If a capacity mechanism was implemented, it would be important to consider the impact of any capacity incentive on the operation of the NEM and the appropriate level of the market price settings — a balance that may be difficult to strike," AGL noted. The expert independent panel leading the review will continue carrying out consultation, and is expected to make final recommendations to energy and climate ministers in late 2025. By Susannah Cornford Australia coal fired power plant closures in NEM Plant Capacity (MW) Owner Closure date State Emissions CER 2023/24 year Scope 1 & 2 of CO2e Eraring 2,880.0 Origin 2025 NSW 13,550,220.0 Yallourn 1,480.0 Energy australia 2029 Vic 10,502,080.0 Callide B 700.0 CS Energy 2029 Qld 4,028,161.0 Total by 2030 5,060.0 28,080,461.0 Coal plant closures in NEM after 2030 Bayswater 2,640.0 AGL 2030-33 NSW 13,712,719.0 Vales Point 1,320.0 Delta 2033 NSW 7,111,963.0 Stanwell 1,460.0 stanwell 2035 Qld 6,982,204.0 Tarong 1,843.0 Stanwell 2035 Qld 10,936,021.0 Kogan 740.0 CS Energy 2035 Qld 4,522,472.0 Callide C 825.0 CS Energy 2035 Qld 688,038.0 Loy Yang A 2,210.0 AGL 2035 Vic 18,723,707.0 Sub-total 11,038.0 62,677,124.0 Total by 2030 16,098.0 90,757,585.0 CER Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

New Zealand’s Fonterra starts electrode boiler


09/05/25
09/05/25

New Zealand’s Fonterra starts electrode boiler

Sydney, 9 May (Argus) — New Zealand dairy co-operative Fonterra has turned on an electrode boiler at its Edendale plant and commissioned two more. This will help reduce CO2 equivalent (CO2e) emissions by 72,800 t/yr from 2027. The co-operative's three boilers will replace coal-fired systems and be powered by renewable energy generated at Edendale, it said on 7 May. Emissions reductions from the plant will account for 4pc of Fonterra's target of a 50.4pc reduction in scope 1 and scope 2 emissions relative to 2018 levels by 2030. The co-operative has committed NZ$70mn ($41.3mn) to build the Edendale boilers, with additional co-funding from New Zealand's Energy Efficiency and Conservation Authority (EECA). Fonterra's on-farm emissions are excluded from New Zealand's emissions trading system , but its coal boilers fall under the scheme. The co-operative has been moving away from coal boilers since 2018, reducing its CO2e emissions by 200,400 t/yr through six conversions. Fonterra has converted coal boilers into wood-fired and electrode boilers in collaboration with EECA. Its 2020 Te Awamutu coal-to-biomass boiler conversion led to a 98.4pc decline in CO2e emissions, from 90,395 t/yr to 1,425 t/yr, according to an EECA study. Fonterra was looking for 80,000-100,000t of Vietnamese wood pellets on a one-year contract starting in mid-2025 as it moves away from fossil fuels to renewables, market participants told Argus in December 2024. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mitsubishi joins Philippine coal plant phaseout project


09/05/25
09/05/25

Mitsubishi joins Philippine coal plant phaseout project

Osaka, 9 May (Argus) — Japanese trading house Mitsubishi has agreed to join a project to phase out a coal-fired power plant in the Philippines, aiming to generate carbon credits through the Transition Credits mechanism along with Japan's Joint Crediting Mechanism (JCM). Mitsubishi and and its Hong Kong-based subsidiary Diamond Generating Asia (DGA) has agreed to join Philippine energy firm Acen, GenZero — a subsidy of Singapore state-owned investment firm Temasek — and Singapore conglomerate Keppel to phase out the 246MW South Luzon coal-fired plant in Batangas, the Philippines, and replace it with a clean power facility. The initial deal for this project was signed by Acen, GenZero and Keppel in August 2024. Acen is now seeking to decommission the coal-fired plant by 2030, instead of the previous target of 2040. It is still unclear what types of clean power sources will then be deployed. But renewables such as solar or onshore wind, alongside storage batteries, could be possible, a Mitsubishi spokesperson told Argus . The partners aim to leverage Transition Credits (TCs) for the early retirement of the plant. TCs are high-integrity carbon credits generated from the emissions reduced through retiring a coal-fired plant early and replacing this with clean energy. The South Luzon project is expected to be one of the first converted coal-fired plants in the world to generate TCs. The project is expected to generate carbon credits equivalent to 19mn t of CO2 emissions reduction over 10 years, the Mitsubishi spokesperson told Argus . Mitsubishi plans to include this project in the JCM mechanism, as the Philippines has been Japan's JCM partner country since January 2017. The company is already marketing the carbon credits in Japan, assuming the credits will be verified under the JCM, while also hoping to sell them in Singapore and the Philippines. Verified carbon reductions or removals under the JCM can be quantified on an international basis. Some of the JCM credits issued from such mitigation efforts will be used to achieve Japan's nationally determined contributions (NDCs), while ensuring double counting is avoided on the basis of corresponding adjustments between countries and consistency with the guidance on co-operative approaches referred to in Article 6.2 of the 2015 Paris climate agreement. JCM credits could be also traded under the Japan's green transformation emission trading system (GX-ETS), which will be officially launched in autumn of 2027 . The GX-ETS adopts the cap-and-trade programme, with the government allocating free allowances for each eligible entity every year. Japan is still highly dependent on coal-fired generation, although Tokyo has pledged to phase out inefficient coal-fed plants by 2030. Coal-fired output accounted for 32pc of the country's total power generation in 2024, according to data from the trade and industry ministry. When asked by Argus where there is the potential for the introduction of the Transition Credits mechanism in Japan, the spokesperson said Mitsubishi has not ruled out the possibility, but added there have been no discussions on this for now. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Japan’s Erex to build biomass power plant in Cambodia


08/05/25
08/05/25

Japan’s Erex to build biomass power plant in Cambodia

Tokyo, 8 May (Argus) — Japanese renewable energy developer Erex aims to start constructing a 50MW biomass-fired power plant in Cambodia in mid-2025, the company told Argus today. The plant in southern Cambodia's Kampong Speu province will be the first biomass-fired power project for Erex in the country. It is scheduled to start commercial operations in the 2027-28 fiscal year, and will burn domestic wood chips and agricultural residues to generate around 350 GWh/yr. The Cambodian government will purchase all the electricity generated at the plant for 25 years after its start-up. Erex plans to build up to five biomass-fired power plants which will burn domestic biomass fuels, as well as several wood pellet factories in Cambodia. The government expects these projects to raise the country's energy security. Erex on 23 April began commercial operations at the 20MW Hau Giang biomass-fired power plant in southern Vietnam, its first biomass-fired power project in the country. Erex aims to construct up to 18 biomass-fired power plants in Vietnam, following Hau Giang. The company has already started constructing two 50MW plants in northern Vietnam. Erex also started wood pellet production at its first factory in Vietnam in March, with a capacity of 150,000 t/yr. The company plans to build up to 20 wood pellet factories in the country. Erex's profits from projects in Vietnam and Cambodia are expected to grow rapidly and could account for more than half of its total profits by around 2030, according to the company, and the projects would also contribute to both countries' decarbonisation efforts. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australian renewable projects gain power grid access


08/05/25
08/05/25

Australian renewable projects gain power grid access

Sydney, 8 May (Argus) — A total of 10 renewable energy projects have been granted access to a power grid in New South Wales (NSW), Australia, to avoid over 10mn t/yr of CO2 equivalent (CO2e) of emissions by 2031, the NSW state government said today. The 10 private solar, wind and battery storage projects will connect to the Central-West Orana Renewable Energy Zone (REZ) , a 20,000 km² area about 400 km west of state capital Sydney that will avoid 10.29mn t/yr of carbon emissions, according to the state's energy minister. Construction of the 240 km transmission line connecting the renewable energy projects to the national electricity market will start in mid-2025 and is estimated to cost A$3.2bn ($2.1bn). The 10 projects will provide total renewable energy and storage capacity of 7.15 GW, capable of powering over half the households in NSW by 2031. The Central-West Orana REZ is expected to be completed by December 2028 and is part of the NSW's transition to renewable energy. The REZ is expected to generate 15,000 GWh/yr of energy when fully operational, around 5pc of the total 273,000 GWh generated in the country in 2023, according to the Australian Department of Environment. The REZ improves the state's chances of meeting its target of reducing emissions by 50pc from 2005 levels by 2030 through lowering its reliance on coal-fired generation, which accounted for 70pc of fuel used in NSW in May 2024-April 2025. Australia's largest coal-fired power station Origin's 2,880 MW Eraring provides 18pc of the state's electricity and will close in August 2027, around a year before the expected completion of the Central West Orana REZ project. By Grace Dudley Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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