Efficiency Gains & Upgradation Initiatives in Power Sector

The Ministry of Power (MoP) has issued a press release on renovations and modernization and life extension of power plants. This release was issued on December 15, 2023.

The Union Minister for Power and New & Renewable Energy has underscored the importance of annual maintenance and periodic upkeep in ensuring the seamless operation of power plants, including thermal and hydro facilities. The Minister highlighted the Central Electricity Authority’s (CEA) General Review 2022, which revealed an increase in the efficiency of coal and lignite-based plants from 34.68% in 2014-15 to 35.88% in 2021-22.

Addressing the issue of Renovation & Modernisation (R&M) and Life Extension (LE), the Minister shared insights from a report prepared by CEA in August 2023. The report, circulated by the Ministry of Power (MoP) to all power utilities, identified 148 thermal units with a combined capacity of approximately 38,150 MW as potential candidates for R&M/LE works. The phasing plan for the implementation of R&M/LE at these units was developed in consultation with central, state, and private power utilities. The decision to carry out R&M/LE activities lies with the utilities, subject to approval from state Electricity Regulatory Commissions after a thorough cost-benefit analysis.

Additionally, the Minister emphasized that the normative operating life of hydroelectric power plants is 40 years, and decisions regarding R&M and Upgradation are made based on Residual Life Assessment (RLA) studies and cost-effectiveness. The Minister highlighted the continuous efforts in R&M and Upgradation as a cost-effective means of optimizing energy resources through efficiency improvements, better availability, and capacity augmentation.

In pursuit of these objectives, the government has formulated five-year plans for continuous monitoring of hydro power projects undergoing Renovation, Modernization, Upgradation, and Life Extension. The Minister announced that R&M, Modernization, Uprating, and Life Extension works at 64 Hydro Electric Plants (HEPs) with an aggregate installed capacity of approximately 11,718 MW are programmed for completion during the years 2022-27. Additionally, works at 21 Hydro Electric Plants (HEPs) with an aggregate installed capacity of around 2,879 MW are scheduled for completion during 2027-32 through Life Extension and Uprating.

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