Khurja power plant was feasible when first proposed eight years ago, an official said. (Representational)
The Tehri Hydro Development Corporation's (THDC) proposed Khurja coal power plant in Uttar Pradesh will push up the cost of electricity and increase air pollution levels in Delhi, says a report by a research institute today.
THDC India Limited (THDCIL), formerly known as Tehri Hydro Development Corporation Ltd, is a joint venture of the Centre and Uttar Pradesh government with equity sharing in the ratio of 3:1 (75:25 per cent).
The report by the Institute for Energy Economics and Financial Analysis (IEEFA) evaluating THDC's proposed Khurja coal power plant, has recommended re-evaluation of the proposal against severe air pollution levels in Delhi.
Delhi's air quality continued to be in the "poor" category today, a day after it had improved from "very poor" Air Quality Index (AQI) zone. The Graded Response Action Plan (GRAP), under which a host of measures are taken to bring down air pollution, is presently enforced in the national capital.
According to the IEEFA report, the proposed plant will push up the cost of electricity at a time when the country's renewable energy options are cheaper, accessible and more sustainable.
At a round-table where the report was released, Tim Buckley, Director of Energy Finance Studies, IEEFA, said electricity users, state and central government, and the project's lenders should not be burdened with yet another expensive stranded asset at a time when local residents needed cleaner energy options.
"Delhi already has the dubious reputation of having the worst air pollution of any city in the world. If the Khurja coal plant is built as planned near Delhi, this will increase the impact on local residents, emergency workers as well as the local government.
"The Khurja power plant was feasible when first proposed eight years ago in response to power supply shortages and outages across northern India, but technology has moved on," Buckley said.
The official said renewable energy generation in India was now cheaper than Khurja's non-mine mouth coal, with the ongoing price decline prompting states, including Uttar Pradesh, to seek solar and wind options to meet the incremental demand growth.
Kashish Shah, IEEFA Energy Research Associate and co-author of the report, says India's ambition to sustain double digit economic growth hinges on improving energy security and reducing the cost of power, and that requires sensible investment.
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