Enhancing Coal Efficiency and Energy Security in India: A Call for Change
Introduction: Coal is an integral part of India’s energy portfolio, serving as a cornerstone for both domestic and international power generation. The introduction of coal-based policies has faced challenges in ensuring fair allocation, often tied to nomination systems that limited participation from coal-producing entities. The Revised SHAKTI Policy aims to streamline this process by offering clearer windows for coal linkages, enhancing transparency and fairness.
Body:
- Window-I: Coal Allocation under Noticed Price
- Details: Coal linkages are allocated at the notified price, ensuring a fairer distribution.
- Benefits: This approach reduces reliance on nominal policies, potentially increasing coal’s role in the power sector.
- Window-II: Premium Over Notified Price
- Details: For premium allocations, coal can be bought via auction or tariff-based bidding, offering flexibility for longer-term commitments.
- Benefits: This window allows greater customization and ensures that coal plants meet their energy demands effectively.
- Impact Section: Employment Potential
- ** coal linkages offer increased employment potential in power plants, reducing reliance on nominal systems.
- Export Benefits: Coal is a key export from central and state sectors, contributing to both domestic and international markets.
- Job Creation: The revised policy provides jobs especially in SC/IPPs, ensuring economic growth.
Background: The history of the SHAKTI Policy has been marked by amendments since its introduction in 2017. Recent amendments have streamlined allocation processes, aligning with market demands and improving fairness for coal-producing entities.
- Coal Linkages Now Offer More Flexibility:
- The revised policy allows coal plants to sell electricity as per their choice, enhancing regulatory flexibility.
- This approach ensures coal linkages benefit all power plants, promoting greater economic integration.
- Cost-Effectiveness Over Nomination-Based Systems:
- By adopting a more transparent and market-driven allocation mechanism, the revised SHAKTI Policy reduces costs compared to traditional systems that often limit coal participation.
Conclusion: The Revised SHAKTI Policy represents a significant step forward in addressing coal’s role in India’s energy landscape. It offers clearer windows for coal linkages, enhanced transparency, and greater flexibility, ultimately contributing to a more efficient and equitable energy system. As coal continues to play a pivotal role, the revised policy reflects an increasingly integrated approach to climate action and sustainable development.