World

India's Coal Conundrum: Can It Evolve Beyond Dependency?

2025-07-14

Author: Jacques

India's relationship with coal is complex, marked by a strong reliance that prioritizes energy security and development needs. Despite external pressure to transition away from this fossil fuel, experts argue for a more pragmatic approach: decarbonizing coal instead of completely phasing it out.

The Hard Truth About Coal's Dominance

Former secretary Ashok Lavasa highlighted the dilemma, asking, "If coal is king, can it be a benevolent king?" The reality is stark—coal, even cleaner versions, will likely continue to be India's main energy source, even as global climate negotiations push for its phase-out.

Why Is India Sticking to Coal?

As the world's third-largest carbon emitter, India's choice to maintain coal usage raises eyebrows, especially with international commitments to reduce emissions and a domestic goal of achieving net-zero emissions by 2070. An important factor is the country's soaring electricity demand, which has surged more than 9% and is projected to double by 2030.

Environmental Costs of Coal Dependence

Coal-fired plants have consistently generated over 70% of India's electricity since the early 2000s, a trend that brings hefty environmental costs. Current estimates suggest that electricity generation represents over 40% of India's annual carbon emissions, with coal accounting for almost three-quarters of that.

Promising but Limited Renewable Energy Solutions

While India is making progress in renewable energy, contributing 46% to its overall installed capacity, these sources are intermittent. They generate power only when conditions are favorable—solar when it's sunny and wind when it's breezy. Consequently, thermal energy remains crucial for balancing the grid, especially during peak demand hours.

The Storage Problem

Experts voice concerns about India's lack of energy storage capacity. Rajiv Porwal from Grid India emphasized that without substantial storage solutions, reliance on thermal power will persist to maintain grid stability.

The Push for Clean Coal Technology

Faced with these challenges, India is exploring ways to reduce emissions from coal-fired plants rather than eliminating coal entirely. A report suggests that decarbonizing thermal plants could cut greenhouse gas emissions by an impressive 30%, crucial for meeting the UN's goal of a 45% reduction in emissions intensity by 2030.

Overcoming Operational Challenges

However, thermal plants face operational constraints, needing to maintain a minimum of 55% capacity during the day, even when renewable sources can potentially cover demand. Experts emphasize the urgent need for improved efficiency in these plants.

Innovative Solutions on the Horizon

Adopting carbon capture technologies and using agricultural waste instead of coal have been suggested as viable options. Evidence from Delhi shows that the latter significantly reduced coal consumption in local thermal plants, yet wider adoption remains inconsistent.

A Systemic Challenge Ahead

While the path forward involves systemic changes and substantial investment, determining the financial implications and identifying who will shoulder these costs is complex. India's coal dependency poses a multifaceted challenge that requires not just immediate but long-term, sustainable solutions.