DVC plans to invest Rs 20,000 crore by 2030 in 4,000 MW of solar capacity at its various plants in West Bengal. This is only the start of a larger plan, which will see an increase in DVC’s total energy capacity by up to 50% with a total expected investment of Rs 50,000 to Rs 60,000 crore in 2030 (if power plans for thermal and pump storage factories are also included). As a result, the company will add almost 10,000 MW of thermal and green energy, bringing its overall installed capacity to 16,700 MW.
DVC presently enjoys an installed capacity of 6,700 MW, of which 6,540 MW is thermal. The corporation says that so far, its solar capacity is only 14 MW, which is very low. But it has already gotten to work on a 348 MW project with the National Thermal Power Corporation (NTPC). DVC is likely to undertake a 250 MW/hour battery storage project as well.
Growth Plans and Investment Details
In his address to a gathering on the occasion of the 77th Foundation Day of DVC, Chairman Suresh Kumar said that there is significant power demand from north, south, and western India. Kumar said that DVC aims to increase its capacity with a balanced mix of thermal and green energy. The company can, with this approach, hope to keep tariffs for the power it sells affordable to consumers. By 2030, DVC wants to add 3,720 MW more of thermal capacity and almost 4,000 MW more of solar capacity.
About the assured coal supply, Kumar said that DVC (Damodar Valley Corporation) and JSPL (Jindal Steel & Power Limited) have the privilege and advantage of location. It is exempted from importing coal. According to him, this is a significant exemption, considering that the Union Ministry of Power has recently recommended coal imports for domestic coal thermal power plants with a 4% blending target until October 15 to guarantee adequate coal stock in the monsoon season.
Coal mining and production
DVC is also planning to ramp up its captive coal mining to mine the Tubed block in Jharkhand, having already secured dedicated rail sidings for easy evacuation. Currently, DVC is producing close to two million metric tons annually, against the sanctioned capacity of 6.6 metric tons by the coal ministry. The company plans to scale up production to six million metric tons “immediately and subsequently achieve commercial-scale production” of nine million metric tons. But under its current plan, output is planned to touch a meager 0.5 mt and 1 mt in the next two years, respectively.
A) DVC’s coal requirement is about 28–30 mt annually
B) long-term prices may change in DVC’s favor
C) the rest is supplied and procured by several other Coal India subsidiaries.
Challenges and Future Projects
Because of a legacy application lodged under the undeveloped 1993 law, Damodar Valley Corporation (DVC) could not participate in the recent auction of coal blocks. DVC’s plans for aggressive capacity addition in thermal and hydropower capacities are set to go through regardless. Apart from the solar capacity, DVC wants to set up two of their pump storage facilities (1,500 MW in Logu Pahar/Jharkhand and 1,000 MW in Panchet/West Bengal), which is a project proposed to be undertaken in a JV with the West Bengal government.
Financial Stability and Dues
As far as financials are concerned, Kumar said the old dues from Jharkhand have come down to about Rs 1,000 crore; the state has promised to clear them soon. Meanwhile, DVC needs financial stability as it expands its energy capacity with ongoing investments.
Conclusion
The way DVC is aggressively moving to augment its solar and thermal power capacities is a clear testimonial to how Indian power demand has been increasing. With considerable monetization and strategic interventions, the company would like to be a game-changer in addressing the country’s energy security needs and, henceforth, walk on an affordability-versus-sustainability path.