Tata Power, one of India’s leading integrated power companies, is set to undertake its first coal power capacity expansion in six years, signalling a strategic shift amid growing challenges in the country’s renewable energy sector.
According to recent tender documents, the company plans to increase the capacity of its Prayagraj Power Generation Co Ltd (PPGCL) plant in Uttar Pradesh by 1,600 megawatts (MW), marking a significant move in the context of India’s evolving energy landscape. This expansion, which comes after Tata Power’s acquisition of PPGCL in 2019 through a joint venture, reflects a broader trend in India’s power sector. While the nation has set ambitious targets to achieve 500 gigawatts (GW) of non-fossil fuel capacity by 2030, project delays, land acquisition issues, and regulatory hurdles have hampered the growth of renewable energy projects. The renewable sector, once hailed as the engine of India’s energy transition, has faced mounting obstacles. Issues such as weak demand for tenders, power purchase agreement delays, and project cancellations have created uncertainty. In contrast, coal remains a reliable, cost-effective source of energy, especially in the face of rising domestic electricity demand driven by economic growth and urbanisation.
The PPGCL plant, with its current 1,980 MW coal power capacity, is one of the key assets in Tata Power’s portfolio. The proposed expansion will require an environmental impact study, a standard procedure to assess potential ecological consequences. This move raises critical questions about the balance between energy security, economic growth, and environmental sustainability. India’s energy landscape is characterised by a paradox. On one hand, the country has made significant strides in increasing its renewable energy capacity, adding nearly 28 GW of solar and wind power in 2024 alone. On the other hand, fossil fuels accounted for more than two-thirds of the total increase in power generation during the same period. The government’s goal to raise coal-fired capacity by 80 GW by 2031-32, increasing the total from the current 220 GW, underscores the enduring role of coal in India’s energy mix. Tata Power’s decision to expand coal capacity aligns with the broader strategy of energy security and supply reliability. The company currently operates around 8.9 GW of coal power across six Indian states and has set a target to achieve a clean energy capacity of over 20 GW by 2030, up from 6.7 GW currently. This transition is backed by a planned investment of $9 billion, focusing on sustainable energy solutions alongside traditional power generation.
However, the reliance on coal raises environmental concerns, particularly in a country grappling with severe air pollution and climate change impacts. Critics argue that expanding coal capacity undermines India’s climate commitments, including its net-zero target by 2070. The environmental impact of such projects extends beyond carbon emissions to issues like water usage, land degradation, and air quality deterioration. To address these concerns, experts emphasise the role of technological advancements in making coal power more sustainable. Innovations such as carbon capture and storage (CCS), advanced combustion technologies, and digital monitoring systems can significantly reduce the environmental footprint of coal plants. Tata Power’s expansion plans may incorporate some of these technologies to enhance efficiency and minimise emissions. The energy transition in India is not merely a technical challenge but also a socio-political one. The need for reliable, affordable energy must be balanced against the imperative of reducing carbon emissions and fostering sustainable development. This balance is crucial for India’s future, as the country continues to emerge as a global energy hub.
The ongoing expansion of Tata Power’s coal capacity also highlights the complexities of global energy trends. While many nations are rapidly decarbonising their energy sectors, India’s unique development trajectory requires a nuanced approach. The country’s energy policies must reconcile the need for economic growth with environmental sustainability, ensuring that the benefits of energy access are equitably distributed. In the coming years, the success of India’s energy transition will be determined by its ability to integrate renewable energy, improve energy efficiency, and manage the environmental impact of fossil fuel use. Tata Power’s strategic moves will be closely watched as indicators of how India navigates this challenging yet crucial path towards a sustainable energy future.
Tata Power Plans First Coal Expansion in Six Years
