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ANNEX IX:MITIGATING CLIMATE CHANGE THROUGH FDI-FINANCED ADVANCED FOSSIL FUEL TECHNOLOGIESByMr. D Thomas GochenourHead of Research55 North Capital PartnersMoscow, Russian Federation&ConsultantUnited Nations Economic Commission for EuropeA. India’s pressing energy needsIndia’s 12 th Five-Year Plan (FYP, 2012-2017) calls for 90 GW of new capacity to beadded to its current stock of 201 GW, at a cost of US$113 billion. In the 11 th FYP, theoriginal target for new capacity additions was 78 GW, but only 55 GW were added dueto environmental and coal problems.In spite of reserves of 60 billion tonnes, the state-owned enterprise (SOE) Coal IndiaLimited is unable to reliably supply enough coal to the power sector. The SOE NationalThermal Power Corporation (NTPC) says it may miss its target expansion because ofcoal shortages. The coal supply deficit has grown to over 130 million tonnes, whichhas to be imported.In 2010, coal supplied 52 per cent of all of India’s primary energy needs, and more than45 per cent of its power output. Also in 2010, India became the world’s fourth largestemitter of CO 2, with 1,750 million tonnes, almost 9 per cent more than in 2009. To slowthe rate of growth and reduce CO 2emissions, higher efficiency technologies must berolled out in the 12 th Plan.Because of its large coal reserves, India has planned to adopt advanced coal-firedtechnologies in its thermal power investment plan. In the 12 th FYP, the aim is for 60 percent supercritical pulverized coal power plants. It is expected to be 100 per cent in the13 th FYP. The technologies are likeliest to be supercritical, ultra-supercritical andadvanced ultra-supercritical (Figure 3-20).B. The strategy for clean coalPrivate Indian investors are making their development plans based on imported coal.Even NTPC is looking to buy overseas coal. Politicians have been unable to solve theproblems of Coal India Limited, but reform is not in the cards at the moment. Oneforeign investor, CPL, recently got a debt rating of BBB- for its offshore loans becauseof the coal risks, as well as other risks.If coal must be imported, then why not develop more power plants based on importedgas (liquefied natural gas, LNG) which, with combined cycle gas turbine (CCGT), delivers109