Transition from coal to clean energy: ‘Bengal to save over Rs 62K cr in coming decade’

Kolkata: A recent study has suggested that Bengal can save over Rs 62,000 crore in the coming decade by shifting to clean energy from coal.

The savings can be accrued through a combination of measures such as the retirement of older, more expensive coal power plants, diverting investment planned for new coal projects to renewables and grid strengthening and the replacement of more expensive coal power contracts with cheaper renewable energy, according to the report formulated by Climate Risk Horizons (CRH) .

The study indicates that about 97 per cent of Bengal’s power currently comes from coal, with only about 200 MW of wind and solar in the state. Several of the state’s coal power units are also over 20 years old and nearing the end of their life. A CRH analysis suggests that phasing out these older, inefficient coal plants will provide immediate savings by way of avoided retrofit costs and lifetime extension costs and reduced penalties.

Older coal plants are typically less efficient, more polluting and will need to meet the air and water emission norms notified by the Ministry of Environment, Forests and Climate Change or pay penalties. The report has featured a tabular break up on the measures that can be taken towards energy transition for financial benefits.

“Many of the suggested measures such as retiring older coal and phasing out expensive contracts do not require any significant investment. However, building up the state’s renewable energy portfolio will require upfront capital investments in RE, battery storage etc. The state government can also tap the growing green bond market directly, or in partnership with the private sector. The private sector is keen to invest in RE as long as there are guaranteed offtake and payment security mechanisms and this would probably be the cheapest and most efficient method,” Ashish Fernandes, CEO of CRH said.