World Bank to spruce up coal-based power plants

Pilot programme for retrofitting plants to cut carbon emissions

In tune with its strategy to support low-carbon development, the World Bank may take up coal-based power generation plants totalling around 1,000 Mw for retrofitting from amongst the plants identified by the Central Electricity Authority.

Retrofitting is a process that helps a power generation plant improve its fuel and energy efficiency.

The Bank has firmed up plans to support a pilot programme and look for a global environment facility (GEF) grant of between $30 million to $60 million. It also plans to supplement the grant with a loan of $150 million from the International Bank for Reconstruction and Development at around 4 per cent blended rate of interest.

The Central Electricity Authority (CEA) has identified around 30,000 Mw of coal-based power generation plants to be retrofitted.

"The pilot programme will be a demonstration programme and can be scaled across plants in India. It is to demonstrate the systematic elimination of barriers for retrofitting plants and improving their efficiency," leading energy specialist at the World Bank for South Asia Energy and Infrastructure, Salman Zaheer, told Business Standard.

GEF helps member countries to conserve and use their biological diversity, reduce greenhouse gas emissions, manage shared water bodies and reduce the emission of ozone-depleting substances.

The Bank is in the process of forming investment plans of $1.3 billion (Rs 5,800 crore) for five hydel power generation projects to be taken up by three public sector units. It will also provide a $400-million loan to the Power Grid Corporation of India Ltd for the Power System Development Project III (PSDP-III) scheduled to be completed by July 31, 2011.

Another of the World Bank's investments is the $80 million (Rs 360 crore) it plans to put in power distribution in Uttaranchal. It is in talks with state governments of West Bengal, Rajasthan and Maharashtra for providing assistance in transmission and distribution services.