According to a new report published on Thursday, Maharashtra could save as much as ₹75,000 crore in the next decade by implementing three steps in its energy sector: shutting down old coal power plants by 2022, halting the construction of a new unit at the Bhusawal thermal power plant (which is in surplus to the state’s requirements) and replacing coal contracts with cleaner alternatives over the next 10 years.
This analysis comes at a time when Covid-19 is causing tax revenues to fall sharply. For comparison, with the savings opportunities presented in the new report by research group Climate Risk Horizons (CRH), Maharashtra’s fiscal slippage for the financial year (FY) 2021-22 is estimated at ₹33,000 crore, according to India Ratings. Maharashtra’s current fiscal deficit, as per FY 2020-21, is ₹78,617 crore. At the crux of the report – Maharashtra’s Energy Transition: A ₹75,000 crore Savings Opportunity – is a strategic move away from the polluting coal-based power, which is set to get more expensive in coming years.
“The pandemic has hit the Maharashtra State Electricity Distribution Company and the state government’s finances. As the government explores ways to cut costs and improve financial health, retiring old coal plants should be part of the mix. A judicious retirement of these assets and incentivising their replacement with cheaper renewable energy will help the state build back better,” said Ashish Fernandes, lead analyst at Climate Risk Horizons, and corresponding author of the report.
Source: hindustantimes.com
