While the push for renewables is strong, thermal energy (mostly coal) remains mandatory in many places like India for grid stability and baseload power due to storage limitations, but regulations now force thermal plants to integrate renewables (Renewable Generation Obligation - RGO), bridging the gap until cost-effective storage makes renewables fully dispatchable, meaning thermal provides the reliable backbone while renewables handle increasing shares, making them complementary, not just substitutes.
While the push for renewables is strong, thermal energy (mostly coal) remains mandatory in many places like India for grid stability and baseload power due to storage limitations, but regulations now force thermal plants to integrate renewables (Renewable Generation Obligation - RGO), bridging the gap until cost-effective storage makes renewables fully dispatchable, meaning thermal provides the reliable backbone while renewables handle increasing shares, making them complementary, not just substitutes.
Why thermal energy is still essential.
Baseload Power & Stability: -
Thermal plants provide constant, dispatchable power (24/7), crucial for grid stability, which intermittent renewables (wind, solar) can't fully match without massive, affordable storage, notes the Indian government.
Energy Security: -
For countries like India, relying heavily on indigenous coal ensures energy independence, says PIB.
Current Capacity: -
Thermal power forms over 50% of India's capacity, making immediate replacement difficult, according to PIB.
How thermal energy is changing.
Renewable Generation Obligation (RGO): -
New thermal plants must generate or procure 40% of their energy from renewables, forcing integration, reports Eco-Business and PSU Watch.
Hybridization: -
This mandate pushes for hybrid plants (thermal + solar/wind) or procurement, reducing reliance on fossil fuels for the full load, notes Ministry of Power and India's energy landscape.
The Future: Complementary, Not Competitive
The strategy isn't just replacing coal but displacing it, with thermal power providing reliability while renewables grow.. Thermal energy remains mandatory for dispatchable power until storage solves intermittency, notes the Indian government.
In essence, thermal power provides the "always-on" baseline, while renewables add clean capacity, with new rules ensuring thermal plants contribute to renewable targets, making them partners in the energy transition, not just rivals, according to Eco-Business and PIB.
India has significant thermal capacity (over 230 GW as of early 2021), with more under construction, supporting energy security.
Solar Power: The largest contributor, with installed capacity exceeding 130 GW by late 2025.
Wind Power: A strong second, surpassing 50 GW in early 2025.
Hydro Power: A significant source, with large hydro contributing around 46 GW and small hydro adding more.
Bioenergy: Biomass and biogas add to the diversified mix, utilizing agricultural waste.
MJF Lion ER YK Sharma
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