India Revises Emission Norms for Thermal Power Plants to Lower Costs

Revised Emission Standards for Thermal Power Plants

The Ministry of Environment, Forest and Climate Change (MoEF&CC) has updated the emission regulations established in 2015 for thermal power facilities, mandating the installation of flue gas desulphurisation (FGD) systems.

This change is expected to positively impact approximately 79% of India's thermal power plants. Experts in the industry believe that the new regulations could lower the cost of electricity generation from thermal plants by 25 to 30 paisa per kilowatt hour (KWh), which would be advantageous for consumers.

Under the revised guidelines, FGDs will now be compulsory solely for coal-fired plants located within 10 kilometers of cities with populations exceeding 1 million, as well as for facilities situated in critically polluted areas or those utilizing high-sulphur imported coal. FGDs are designed to eliminate sulphur dioxide (SO₂) emissions from the exhaust of coal-fired power plants. While effective in high-sulphur scenarios, experts point out that FGDs are costly, require significant water resources, and can increase carbon dioxide emissions during both installation and operation.

These systems are particularly beneficial in regions where high-sulphur coal is utilized or where ambient sulphur dioxide levels are elevated, especially in densely populated urban areas. The government's decision follows an independent evaluation by three Indian research institutions, which reportedly include IIT Delhi, CSIR-NEERI, and the National Institute of Advanced Studies (NIAS). Their findings indicated that ambient sulphur dioxide levels remain within national standards, even in areas lacking FGDs.

Moreover, the comprehensive retrofitting of FGDs is anticipated to elevate carbon dioxide emissions, primarily due to the additional limestone mining and energy consumption required. Environmental advocates, however, caution that this relaxation of standards could hinder progress towards achieving clean air objectives. In contrast, government representatives assert that the new framework effectively targets pollution in the most critical areas. For a developing nation like India, which still depends on thermal plants for over 80% of its energy needs, this approach is seen as a practical solution. The updated guidelines align with leading global practices, as countries such as the US, EU, and China have also shifted towards targeted FGD implementation rather than blanket requirements.