Archive · 26 Dec 2025
Discoms Prefer Coal Over Green Power
Even though green power is cheaper, some electricity companies in India are still choosing coal.
They are worried about the low prices and high taxes on batteries.
Batteries also can't provide power for a full day, so they think coal is more reliable.
Coal has a steady fuel supply and can work all the time, which is important for providing electricity around the clock.
Green power is cheaper but discoms prefer coal due to viability concerns.
18% GST on battery services increases the cost of green power.
Batteries are imported, raising supply chain concerns.
Thermal power is seen as more reliable with assured fuel supply.
Batteries can only supply power for up to seven hours, requiring thermal power for 24/7 supply.
- Who
- State power distributors (discoms)
- What
- Preference for coal over green power
- When
- Current situation
- Where
- India
- Why
- Concerns over viability, GST, supply chain, and battery duration
- GST on battery services
- 18%
- Battery supply duration
- Up to 7 hours
- Thermal power advantage
- Assured fuel supply and baseload availability