Here’s Why We’re Glad About The Indian Government Cancelling Construction Of 14 GigaWatt Power Plants!


While the entire world is worried about the adverse effects of green house gases released into the environment due to electricity generating plants, India is taking giant steps towards becoming the leader of electricity generation through renewable resources. And the cancellation of construction of 13.7 Giga Watts Coal-Power plants in this month serves as a proof to this fact. But if such huge constructions are cancelled, won’t there be additional burden on the power generation companies and the customers?



The main reason behind this is that the costs for the generation of per unit of Solar Power have become so low that the production of power through coal is deemed to be risky. Currently some of the biggest Solar Power plants in India – Bhalda and Kadapa generate electricity at an unbelievable rates of Rs. 2.44/kWh and 3.15/kWh. According to the article written by world-renowned analyst Tim Buckley’s recent article on, India’s energy revolution can have a huge impact on world power market.



Since the British rule, coal and hydro generations plants have been in place which are always at the risk as the supply of coal is not guaranteed and dipping water levels in dams affect the hydro electric plants. But in December 2016, the central government rolled out a plan with a target to generate 257GW of energy through renewable and environmental resources. The main aim is to reduce the thermal-energy generation to 43% by the year 2027.



Now with solar power becoming so cheap, the imports of coal have reduced drastically as well the pressure on government to build more hydro electricity plants. And due to this foreign companies are competing fiercely to invest in the Indian market. As a result, Andhra Pradesh has seen investments flow from French power giant Engie for it’s 250 MW capacity plant in Kadapa while companies from Japan, US and Australia are trying their best to enter the Indian power sector. This could clearly have an impact on environment and a great sign for our Indian economy as well.



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