India's reliance on coal for energy is a complex issue, deeply intertwined with its economic growth, energy security, and commitment to climate goals. While the nation strives to increase its renewable energy capacity, phasing out coal completely is not a feasible short-term solution. Instead, the focus is on making coal cleaner through technological advancements and strategic policy initiatives.
The Current Energy Landscape
Coal currently accounts for a significant portion of India's energy supply, approximately 59% as of FY23. It fuels critical industries like power generation, steel, cement, and aluminum production. In fact, coal-based power plants contribute 40% of India's fossil fuel emissions. Despite the increasing emphasis on renewable energy, coal is expected to maintain a substantial share in the energy mix, projected to contribute around 33% of the total primary energy supply by 2047. The demand for non-coking coal (thermal or steam coal) is expected to reach 1,128 million tonnes in FY25, a 3% increase from FY24.
Several factors contribute to India's continued dependence on coal:
The Push for Cleaner Coal
Recognizing the environmental impact of coal, India is actively exploring and implementing clean coal technologies (CCTs). These technologies aim to reduce emissions and improve the efficiency of coal-based power generation. Some of the CCTs being deployed include:
The government is providing incentives and formulating policies to support coal gasification projects, including a provision for a 50% rebate in revenue share for coal used for gasification. An ₹8500 crore incentive scheme has also been approved to provide Viability Gap Funding (VGF) to promote coal/lignite gasification projects.
Challenges and Opportunities
Despite the potential of CCTs, several challenges remain:
However, there are also significant opportunities:
The Path Forward
India's energy transition requires a balanced approach, combining the expansion of renewable energy with cleaner coal technologies. This includes:
By pursuing these strategies, India can continue to meet its growing energy needs while minimizing the environmental impact of coal. The nation has set a goal to achieve net-zero emissions by 2070 and is committed to increasing its non-fossil fuel energy capacity to 500 GW by 2030. While coal will remain a significant part of India's energy mix for the foreseeable future, embracing cleaner technologies and transitioning to a more sustainable energy system is essential for a greener future.