As India plans to add 80 GW of thermal capacity by 2032, a global report released on Wednesday said that utilisation rates or plant load factors (PLFs) of Indian coal plants will fall to 55% in FY 2031-32 from 69% in FY 2024-25, as coal shifts from being a baseload provider to a flexible balancing resource. Advertisement

The report by energy think tank Ember, points that the coal fleet will be required to routinely swing by 70-80 gigawatts (GW) between morning and mid-day, operating only slightly above its technical minimum. Lower PLFs and higher flexing requirements will increase both per unit capacity-carrying (fixed) and operating costs for coal under power purchase agreements (PPAs).

“Already, coal-based electricity has become prohibitively expensive, with recently discovered tariff

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