Govt eases exhaust gas rules for thermal power plants, may lower power prices | Mint

New Delhi: The government has relaxed the universal implementation of the flue-gas desulphurization (FGD) systems at coal-based power plants across the country, in a move that is likely to lower electricity prices.

A 12 July notification from the Union ministry of environment, forest and climate change (MoEF&CC) said thermal power plants outside a 10km radius of cities with a population of 1 million people or more will be excluded from the requirement to install the system. Flue gas is a residue from thermal power plants, emits sulphur dioxide (SO2), which can mix in the atmosphere and create secondary particulate matter, an air pollutant.

While plants in the National Capital Region (NCR) and other cities with at least 1 million population will have to comply with the norm, for those within 10km radius of critically polluted areas or non-attainment cities, the need for FGD installation will be decided on a case-by-case basis by the Centre based on recommendations of the expert appraisal committee in charge of thermal power projects.

“The sulphur dioxide emission standards shall not be applicable to all Category C thermal power plants subject to ensuring compliance of stack height criteria notified vide notification number GSR 742 (E), dated the 30th August, 1990,” said the notification referring to the plants outside the radius of 10km of cities with 1 million population.

These plants, which are exempted from the requirement to install FGD systems, account for nearly 79% of the overall 180 operational power plants in the country.

Plants within a 10km radius of the NCR or cities with a population of 1 million initially had to install FGD systems by 2017 but have been given multiple extensions. Now, they need to comply by 2027-end.

‘Within limits’

A report by National Environmental Engineering Research Institute, Nagpur, in collaboration with NITI Aayog, in December said the ambient SO2 concentration in all the monitoring stations (CAAQMS) is well below the prescribed norms of 80 micrograms per cubic meter.

It noted that installation of FGDs in thermal power plants leads to higher capital investment, increased power consumption, increased consumer tariff and a higher water and carbon footprint without environmental benefits.

“There is a need to revisit the stack emission norms for SO2 as per the circular of MoEF&CC, 2015, with consideration of India’s latitudinal position, close to the equator compared to European countries, the USA, the UK, developed countries who have given guidelines for SO2 emission control. India has higher and stronger solar insolation, leading to high ground-level heating, vertical convection, high mixing height, high ventilation, etc.,” the report said.

According to the report, the sulphur content of coal of other countries is much higher compared to Indian coal. In case of Indian coal, the sulphur content is less than 0.5%.

On the cost implication of implementing FGD systems, the report said that the current cost of FGD systems is around ₹1.40 crore per megawatt. Citing data from the Central Electricity Authority, it said around ₹1.47 trillion capital investment would be required for the installation of the remaining 105GW coal-based power plants.