India has witnessed a remarkable growth in coal-based power generation, which accounts for more than 70% of the total power supply in the country. The domestic coal production has also increased, reducing the dependence on imported coal and saving foreign reserves.
Growth in coal-based power generation and production
Coal is the major source of power generation in India, meeting the growing energy demand driven by industrial growth, technological advancements, population growth and economic development. According to the Ministry of Coal, coal-based power generation in the country exhibited a noteworthy growth of approximately 10.13% during the period from April to December 2023, compared to the corresponding period in the previous year .
The domestic coal-based power generation during Apr-Dec’23 reached 872 Billion Units (BU), reflecting an increase of 7.14% from the 813.9 Billion Units (BU) generated in the corresponding period of last year. This reflects an ample coal supply to meet the growing energy demand in the country.
The domestic coal production has also increased, reaching 734.5 Million Tonnes (MT) during Apr-Dec’23, which is 8.6% higher than the 676.5 MT produced in the same period of last year. The government persists in its efforts to further enhance coal production, aiming to increase availability and reduce dependence on imported coal, thereby safeguarding foreign reserves.
Reduction in coal import for blending
Despite the escalating power demand, coal import for blending has decreased substantially by 46.57% to 13.57 (MT) up to October’23 from 25.4 MT in the corresponding period of previous year, showcasing the nation’s commitment to self-reliance in coal production and minimizing overall coal imports.
Commitment to net-zero emissions by 2070
India is also committed to clean energy and reducing its carbon footprint, as evident from its pledge to achieve net-zero emissions by 2070 at the COP26 summit. However, as a fast-developing country with vast domestic coal reserves, India also considers it necessary to take advantage of its own resources for ensuring energy security and self-reliance .
Transformation of India’s coal sector
India’s coal sector is thus undergoing a transformation, balancing between the twin objectives of meeting the energy demand and addressing the environmental concerns. Coal-based power generation is expected to remain a significant contributor to the country’s power supply, while also adopting cleaner and more efficient technologies.
Some of these technologies include green hydrogen, carbon capture, usage and storage (CCUS), natural climate solutions and material circularity. These technologies have the potential to reduce emissions across various sectors such as power, steel, automotive, aviation, cement and agriculture. However, they also require significant cost reduction, policy support and technology development to become viable and scalable.
India has the potential to create 287 gigatons of carbon space for the world by achieving net-zero emissions by 2070. This amounts to almost half of the global carbon budget for an even chance at limiting warming to 1.5°C. However, this also requires a well-planned, orderly and accelerated transition that can balance economic growth and social development with environmental sustainability.