National Electricity Plan Flashcards
NEWS
The latest draft of the National Electricity Plan (NEP), which covers the period 2022-27, marks a
significant departure from its previous edition, which had focused primarily on renewable energy
What is the National Electricity Plan?
The NEP is a crucial document that guides the development of the power sector in
India. It is formulated by the Central Electricity Authority (CEA) every five years under
the Electricity Act, 2003.
The CEA formulates short-term (5-year) and prospective plans (15-year) to assess
the demand for planning capacity addition and coordinate the activities of various planning
agencies for the optimal utilization of resources.
The NEP provides a review of the last five years (2017-22), capacity addition requirements
for 2022-27, and projections for the period 2027-2032.
The first NEP was notified in 2007, the Second Plan in December 2013, and the third
plan which covers the detailed Plan for 2017-22 and the perspective Plan for 2022-27 was
notified in 2018.
New Draft:
It recognizes the need for additional coal-based capacity, ranging from 17 GW to
nearly 28 GW, till 2031-32, over and above the 25 GW of coal-based capacity that is
currently under construction.
The draft Plan also highlights the need for significant investments in battery storage, with
an estimated requirement of between 51 GW to 84 GW by 2031-32.
It projects an increase in the Plant Load Factor (PLF) of coal-fired power plants from 55% up
to 2026-27 to 62 % in 2031-32.
It also emphasizes the challenges posed by the increasing reliance on renewables,
which will require careful management and planning in the years ahead.
What are the Related Challenges?
BESS based on Lithium-ion batteries offer a cost-effective solution to balance the grid against
load fluctuations and intermittency in generation. The energy storage can provide energy timeshifting, allowing power to be used when it is needed rather than being wasted when it is
generated.
It is important to continue investing in the development of battery storage technology, as well as
exploring new solutions such as water-based systems. This will help address the challenges
outlined in the National Electricity Plan for 2022-27 and ensure a stable and reliable power
supply in India.
Additionally, increasing the use of hybrid generation models will help to transition to renewable
energy sources while ensuring backup power is available when needed.
