Your electricity bills in India should go down soon
What's the story
The Indian government's decision to relax flue-gas desulphurization (FGD) norms for coal-fired power plants is tipped to cut electricity costs significantly. The new rules, detailed in a gazette notification, limit mandatory FGD installation to plants within 10km of cities with populations over one million. This move is likely to reduce electricity costs by 25-30p per unit, officials said.
Compliance criteria
Exemptions for plants in critically polluted areas
Factories in critically polluted areas or non-attainment cities will be assessed individually, while all other plants are exempt from mandatory FGD installation. The decision was taken after a detailed study by the Central Pollution Control Board (CPCB), which considered various factors, including higher carbon dioxide emissions due to existing control measures. Industry officials believe this will lead to differentiated compliance based on proximity to urban populations and coal sulfur content.
Scientific backing
Framework based on studies by IIT Delhi, CSIR-NEERI
The new framework comes after extensive discussions and independent studies by institutes such as IIT Delhi, CSIR-NEERI, and NIAS. These studies found ambient sulfur dioxide levels in most parts of India, well within the National Ambient Air Quality Standards (NAAQS). Measurements across several cities showed sulfur oxide levels between 3-20 micrograms per cubic meter, much lower than the NAAQS limit of 80 micrograms per cubic meter.
Environmental impact
NIAS study on retrofitting FGD's across India
The NIAS study has warned that retrofitting FGDs across India would lead to an additional 69 million tons of CO2 emissions between 2025 and 2030. This is due to higher limestone mining, transportation, and power consumption.
Cost implications
Financial burden of retrofitting estimated at ₹2.5L crore
The financial burden of compulsory FGD retrofitting was earlier estimated at more than ₹2.5 lakh crore, or ₹1.2 crore/MW, with installation timelines of up to 45 days per unit. Power producers had warned this would raise costs and jeopardize the grid stability during peak seasons. A senior executive at a leading public sector utility welcomed the decision as "a rational, science-based move that avoids unnecessary costs."