Why one power plant matters more than you think

JSW Energy has signed a deal to acquire Maruti Clean Coal and Power (MCCPL), which owns and operates a 300 MW thermal power plant in Korba, Chhattisgarh. 

Why does this matter: because JSW isn't buying just a power plant, it's buying a business that already has customers. 

The plant has an agreement to supply power to Rajasthan's electricity distributors for nearly 14 more years, ensuring a steady stream of revenue.

For JSW Energy, this is a quick way to increase capacity without spending years building a new plant from scratch. Once the deal is completed, the company's thermal power capacity will move closer to 6,000 MW, strengthening its position in India's growing electricity market.

Bigger picture: even though more than half of India's installed power capacity now comes from non-fossil fuel sources, thermal power still plays a crucial role in keeping the lights on. 

Solar and wind power are growing rapidly, but they don't generate electricity all the time. Thermal plants help bridge that gap during peak demand, bad weather and periods of low renewable generation.

And demand is only going up. India's per capita electricity consumption is expected to rise from around 1,400 kWh today to nearly 4,800 kWh by 2050.