Coal continues to dominate India’s energy mix as growth in renewables stalls

New Delhi, August 9 (KNN) Prime Minister Narendra Modi’s recent celebration of India passing the 1 billion metric tonne mark in coal and lignite production underscores the country’s complex relationship with the fossil fuel.

For the third year in a row, India has ordered coal-fired power plants to run at full capacity during the hot summer months, a move that underscores the country’s heavy reliance on coal, which still accounts for more than 70 percent of its electricity needs.

The reasons for India’s continued dependence on coal are multifaceted. As the world’s most populous country with 1.4 billion people, India faces growing electricity demand that is expected to grow by at least 6 percent annually in the coming years.

This increase is due to rising living standards and increased demand for cooling due to extreme heat, partly caused by climate change.

India’s coal demand rose by almost 10 percent in 2023, the largest percentage increase in the world. This growth came despite significant progress in renewable energy capacity, which increased 25-fold over the past decade.

But the transition to clean energy faces challenges. While India has set an ambitious target of 500 gigawatts of clean energy capacity by 2030, renewable energy growth has stagnated in recent years.

Experts say India needs to install 50-60 gigawatts of clean energy per year to meet growing demand, much more than the current rate of less than 15 gigawatts per year.

The coal industry’s deep presence in India’s economy and society further complicates the transition. Millions of jobs are tied to coal and related sectors, making any rapid change politically and economically difficult.

As India navigates this energy dilemma, it continues to call on developed countries to provide greater support in its clean energy transition. The country’s ability to balance growth needs with climate commitments will be key to shaping its energy future and global climate efforts.

(KNN Office)