Some studies cite advantagesSome research studies have also argued in favour of it, citing the economic and the environmental benefits of shutting down coal plants older than, say, 25 years. While there are some old plants tied up in expensive power purchase agreements, as in the case of the CERC order, there are also several old plants, which generate at lower costs. This may be due to locational advantage rather than efficiency, as older plants are likely to be located closer to the coal source, reducing coal transport costs. Similarly, savings in coal consumption by replacing generation from plants older than 25 years with newer coal plants are also likely to be only in the 1%-2% range. Indeed, about half the coal capacity older than 25 years has already issued tenders for pollution control equipment installation.

Source: The Hindu August 08, 2021 18:35 UTC