Coal to dominate India's power mix over next decade

The value of coal projects stood about five times more than that of hydropower projects.

Coal-fuelled power plants is expected to drive growth in India's power sector over the next decade as power and transmission-related projects on dirty energy will account for 88 out of 347 projects in the pipeline, Fitch Solutions reported.

The estimated value of coal projects is at $95.6b, five times bigger than that of hydropower projects which have 113 projects currently at planning and tendering stages.

Generation via coal is projected to hit 1,930 TWh over the next decade, whilst in comparison, non-hydropower renewables, although on an increasing trend, is expected to generate 433 TWh.

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Fitch added that non-hydropower renewable projects will grow over the next decade, although not as much as coal. Renewables accounted for 100 of the projects in the pipeline, with solar projects taking 67% of the total.

The expansion of the country's power and transmission sector is expected to average 7.6% per annum in real terms within a 10-year period through 2028.

The northern and north-eastern regions were cited as bright spots for power infrastructure investments, as its power deficit in FY2018-19 stood at 4,897 MW and 473 MW respectively.