India asks coal plants to run more flexibly to make room for solar power

India is preparing a plan to make its coal plants more flexible as the country’s electricity grid struggles to absorb the rising volumes of solar power being generated after a decade of rapid renewable-energy expansion.

According to people familiar with the matter, the power ministry is finalising a proposal that would require coal-fired power stations to invest in upgrades allowing them to operate reliably at much lower load levels.

Plants may be mandated to run at load factors as low as 40% — a threshold that reduces efficiency but creates additional space in the grid for renewables.

To cope with the increased wear and tear associated with low-load operations, coal plants would need to budget for software improvements, higher maintenance spending, and incentive payouts to ensure adequate participation. Maintenance expenses alone may rise by about 20%. The plan is still under discussion. The additional costs would ultimately be passed on to consumers once approved by the national power regulator.

India’s grid has been facing curtailments of solar power, particularly during peak generation hours, due to the lack of energy storage and battery systems. While the government has ambitious renewable targets, coal remains the most reliable option for balancing variable solar output, with gas plants constrained by expensive imported fuel and hydropower affected by seasonal fluctuations.

The strategy — effectively using coal plants as flexible backup for green energy — mirrors measures adopted in other countries. In 2023, China began compensating its fossil-fuel generators for spending long periods idle in order to integrate more renewable electricity into the system.