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01 October 2024

India Balances Coal Dependency While Pursuing Green Energy

Experts recommend patience as India shifts from coal to sustainable energy amid economic challenges

India's path to reducing its reliance on coal and transitioning to greener energy sources is not just about making changes on paper—it's about balancing the urgent need for sustainable development with the economic realities of today. The World’s second-largest consumer of coal, India finds itself at the center of discussions on how developing nations can imbibe renewable technologies without sacrificing economic growth. The shift toward clean energy is underway, but experts agree it will take time and careful navigation.

With coal providing about 75% of India's electricity, the country faces considerable challenges. The thermal power station at Hussain Sagar, established back in 1920, marked the beginning of India’s coal dependency—a history far younger than the long-standing coal utilization seen in the West. This early adoption of coal laid the groundwork for India's industrial ascension, delivering required power, affordability, and domestic availability. Sunil Dahiya, an independent energy analyst, stresses the importance of improving coal plant efficiencies as India gradually adopts advanced pollution-control technologies. This approach is pivotal because it aims to mitigate the harmful emissions currently produced by coal-fired power plants.

Transitioning away from coal isn’t merely about energy sources; it's about forging paths to energy security and economic growth. With energy accounting for roughly three-quarters of India's greenhouse gas emissions, any action toward green energy must also tackle economic development. A unique challenge emerges as energy consumption targets are projected to double by 2047. Currently, per-capita energy consumption is only about 23% of China’s and 35% of the global average, leading to predictions for significant increases post-2022. By 2047, every Indian citizen hopes to gain access to modern and clean energy using sustainable principles, emphasizing energy efficiency and conservation.

The country’s policy framework highlights ambitions of raising the renewable energy share, aiming for 40% of total energy requirements through cleaner sources by 2047. But achieving these targets requires substantial planning and investment. The current state of renewables reveals intermittent energy supply as wind and solar technologies cannot match the consistent output provided by coal, cascading storage limitations exacerbate this issue as large-scale energy storage technologies remain underdeveloped.

The complexity intensifies when addressing India’s energy poverty gap, particularly between urban and rural populations. Reports indicate 56% of rural households still rely on traditional biomass like wood or dung for cooking—a staggering figure when compared against the optimistic goals for 2047. Transformational infrastructure has to be developed to reach even remote areas with cleaner fuels, allowing every household access. For Dahiya, India’s heavy reliance on coal is as much about economic factors as it is about energy supply. "Coal is not just cheap; it’s readily available, and it supports regional industries which heavily depend on consistent energy," he adds, shedding light on the multiple dimensions of energy policy formulation.

This multifaceted approach extends to the increasing call for cleaner technologies and the various sectors of the economy such as steel or cement production, which substantially contribute to the growing electricity consumption. The structural development within these industries remains tied to coal; until alternatives are proven viable, the temptation to maintain the status quo is immense.

Despite the rapid pace of global shifts toward green energy, the gap between developed and developing nations remains stark. While nations like the UK close their last coal plant, India's situation is compounded by increasing demands for energy and its slow yet steady movement toward transformation. The government's plans to double new fiberglass and coal production capacity by 2047 signify the enormous expectations surrounding energy demand and the accompanying social and economic developments.

For some experts, the most pressing issue spins around mineral security. The heavy reliance on imported minerals for green technologies raises red flags about resource allocation and sustainability. The concentration of the global supply chain puts India at risk if import lines are disrupted; this reality necessitates strategic investments and local production strategies.

Moving toward renewable energy is more than just transitioning to wind and solar; it’s about creating pathways for the future. With ambitious plans and long-term goals now set, India’s narrative on transitioning to clean energy emerges as one where patience may be as valuable as innovation.

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