How conversion of old coal plants in Maharashtra can bring benefits of 5,700 KR | Daily News Byte

For the first time, the costs and benefits of retiring and reusing 4,020 MW of obsolete coal-fired units at Bhusawal, Chandrapur, Koradi, Khaparkheda and Nashik have been quantified, according to research by Dr Gireesh Shrimali, Head of Transition Finance Research, Oxford Sustainable Finance Group at the University of Oxford , according to a Climate Risk Horizons press release.

Repurposing some of Maharashtra’s oldest and most expensive coal-fired power plants using land and some of the old coal infrastructure for clean energy and grid stability services could result in valuable benefits, according to a new analysis commissioned by Climate Risk Horizons. ₹5,700 crowns.

In line with India’s Nationally Determined Contributions (NDC) under the Paris Climate Agreement, the report explains how the country can maximize the financial gains from converting older units over the next ten years, while gradually reducing its reliance on coal.

Dr Srimali said: “The financial benefits of converting some or all of these coal plants would be between 2-4 times the cost of decommissioning and would cover a significant proportion of the new capital costs required for solar, batteries and synchronous capacitors. .

He added that the estimated total decommissioning cost for the units under consideration is Rs. 1,756 crore, while the findings of the study showed that the one-time savings from switching to solar PV with battery storage would be Rs. 4,356 crowns.

He further stated that the analysis revealed that the benefits are even greater, na ₹5,700 crores, if the plant’s old turbogenerator is also converted to function as a synchronous condenser in addition to converting coal-fired plants for solar PV and battery storage.

“Using already existing land and grid connection facilities would significantly reduce the cost of produced renewable energy. This would lead to ₹1.87 i ₹2.69 per unit of electricity, i.e. for solar PV and PV with battery storage, providing the Maharashtra State Electricity Company (Mahagenco) with a low-cost source of flexible energy,” Srimali said.

Climate Risk Horizons CEO Ashish Fernandes said: “Maharashtra is already one of the leading states in India’s energy transition story. This study shows that decommissioning and converting the state’s older, more expensive coal-fired power plants could provide a financially attractive opportunity to accelerate this transition in a way that benefits state finances”.

Fernandes continued, saying these aging coal units are at or near the end of their useful lives and have high operating costs to ₹6/kWh. To meet emissions standards, they must also undergo expensive retrofits to control air pollution.

“Several studies have already shown that retiring old coal plants and replacing their planned output with new, renewable energy can generate savings through lower electricity costs.” This analysis looked at the specifics of the plants concerned in Maharashtra, detailed decommissioning costs and financial costs. the benefits that would result from repurposing existing land and electrical infrastructure for a combination of solar PV systems, battery storage and grid stabilization services,” said Fernandes.

The capacity of 1,224 MW of solar and 120 MW of 4-hour battery storage would result from the conversion of the facilities and their associated ash to solar and battery storage.

Given the serious air and water pollution problems caused by coal-fired power plants in the state, according to Suresh Chopane, president of the Green Planet Society in Chandrapur (a coal pollution hotspot), Maharashtra needs to reduce its reliance on expensive and multiple… modern plants on coal. We must consider long-term solutions to stop the rise in electricity prices as well as to improve public health.

(With inputs from PTI)