Study: India can save $1.2 Billion a Year by Shutting Old Coal Plants

A study says that by shutting down some old coal-burning power plants and allowing newer ones to run for longer hours India can save $1.2 billion per year. The study was conducted by Council on Energy, Environment and Water. (CEEW)


  • The report says that India should quickly decommission inefficient coal-fired capacity of 30 gigawatts. The country should also set aside 20 gigawatts of plants as reserve.
  • Shutting down the old plants, which consume more coal, can help reduce greenhouse-gas emissions, clean up the air of the country and reduce water and soil pollution.
  • Closing down the old plants will also improve the use capacity of the thermal fleet which is currently being underutilized.
  • Each passing year of delay of closing down the old plants in the country increases the burden of higher electricity bill as well as water, air and soil pollution.
  • Currently, India has 203-gigawatt of coal power. This accounts for 53% of the country’s installed capacity generation and around 70% of the electricity output of the country.

How was the study conducted?

194 gigawatts of coal power plants were examined by CEEW over a 30-month time period which ended in the month of February 2020. The new system which is being advocated by CEEW will avoid 42 million tons of coal being burnt every year which will turn out to be a key source of financial savings as well as have positive impact on the environment and pollution causing emissions.


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