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World Energy Outlook 2007

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projected to amount to 410 GW, including the replacement of some older<br />

power plants, mainly coal-fired. This is about the same as the current installed<br />

capacity of Japan, Korea and Australia. In the period 2006-2015, India is<br />

projected to build 113 GW of capacity. More than half of this capacity is<br />

projected to be coal-fired (Figure 17.12). These new coal-fired power plants<br />

alone would increase India's CO 2<br />

emissions by about 0.3 Gt above current<br />

levels by 2015 and by 1.1 Gt between now and 2030. About 15 GW of coalfired<br />

capacity was under construction at the beginning of <strong>2007</strong>.<br />

180<br />

160<br />

140<br />

120<br />

Figure 17.12: India's Capacity Additions by Fuel<br />

GW<br />

100<br />

80<br />

60<br />

40<br />

20<br />

0<br />

2005-2015 2015-2030<br />

Coal Oil Gas Nuclear<br />

Hydro<br />

Wind Rest of renewables<br />

Power Generation Economics<br />

The most economic fuel for electricity generation in India is coal, though<br />

nuclear power can compete at higher coal prices (Figure 17.13). The generating<br />

cost of CCGTs is largely dependent on gas prices. A range of $4.5 to $8 per<br />

MBtu has been used; the current price for power producers is lower than this<br />

but are expected to be higher in the future. CCGT construction costs are<br />

assumed to move in line with international trends. 14 Private investors may<br />

nonetheless still favour gas over coal, because of its flexibility and low initial<br />

cost. With generating costs ranging between US cents 4.7 and 7.7 per kWh,<br />

gas can be competitive for on-site electricity production in industry. The<br />

current electricity price for industry is about US cents 9 per kWh. Gas costs are<br />

reduced where the plants earn CDM credits.<br />

17<br />

14. Construction costs of CCGT projects in India in the 1990s have been higher than in OECD<br />

countries.<br />

Chapter 17 - Reference Scenario Supply Projections 517

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