ANNOUNCEMENTS
In a nation where the hum of progress is powered by electricity, India’s energy sector stands at a critical juncture due to rising power consumption. Coal-fired thermal power plants contribute to approximately 50% of the total installed capacity and this heavy reliance on coal has made them the largest contributors of CO2 emissions. While there has been a transition towards renewables, coal still leads the energy mix. There is a long way to go before a complete decarbonization of the sector is possible. Government policies and increasing compliance with air quality norms have made some thermal power plants switch over to cleaner technologies.
This study attempts to comprehend the intricate link between the environment-friendly behaviour and competitive dynamic of thermal power plants in India. For this, plant-level data was collected for all the coal-based power plants across India. A two-step methodology was used for the analysis. First, a Data Envelopment Analysis (DEA) was done to ascertain efficiency scores for each plant using inputs like installed capacity, total fuel consumption and outputs like plant load factor (PLF) and net electricity consumed. Then these efficiency scores were used as the dependent variable in the second stage of the model, the double-bootstrap truncated regression model.
A significant inverse link exists between CO₂ emissions and efficiency, suggesting cleaner plants perform better. Larger plants may face scale inefficiencies or operational complexity, while age-technology interactions are statistically insignificant. From a policy perspective, introduction of a carbon tax and a need for targeted subsidies and credit mechanisms to accelerate the use of advanced technologies in the sector would enable India’s power sector to transition more equitably and efficiently toward a low-carbon future.
Key words: Environmental efficiency, CO2 emissions, thermal power plants, energy transition, sustainability, cleaner technologies, carbon tax.
