Gujarat Cancelling Coal-Fired Power Plant in India

The government of the state Gujarat has canceled the planned 4,000-Megawatt Ultra-Mega Power Project (UMPP) due to more than sufficient existing generation capacity and a desire to transition from fossil fuel–based energy sources to renewables. The state of Gujarat, where this plant was planned, has already one UMPP that runs on coal, the Mundra unit, which became operational in March 2013.

The power plant was canceled because according to the state government, “there is surplus generation capacity and, instead of adding thermal power, the state wishes to focus for now on renewable power”. Last year, the world’s largest solar plant, the Kamuthi Solar Power Project, was completed in southern India, it can generate the capacity of 648 MW, as much electricity as most coal or nuclear power stations. Now the Gujarati government is also focusing on solar power and plans to install solar panels on rooftops in the state.

In addition India is making a concerted push away from imported coal. Earlier this year numerous Indian newspapers reported that Indian coal imports declined by 21.7 percent in January. By the end of 2026-27, India is projected to get 56 percent of its installed power capacity from clean energy resources, according to the new coal linkage policy approved by the government. Today, India is still the world’s third-largest coal producer and the third-biggest greenhouse gas emitter, and whether India will be able to achieve its goals and meet the Paris climate pledges are yet to be seen. It must be only the start of boom time for India’s renewable energy sector.

6 replies
  1. Marc Douldun
    Marc Douldun says:

    Its not about environment, its about money. India is the world’s second best market for investing in renewable energy, right after China. Due to a shift in domestic energy policy under president Donald Trump, this year America has lost its crown.

    Reply
  2. Andrea
    Andrea says:

    Thats good example, but apart from cancelling new coal-fired power plants, it would be better to close the old existing coal plants. South Korea is now closing 10 coal-fired power plants.

    Reply

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