Coal: India's Enduring Energy Backbone
Coal stands resilient as India's most cost-effective energy source, boasting substantial reserves of 361.41 billion tonnes as of April 1, 2022. With such abundant resources, coal remains poised to maintain its pivotal role in the nation's energy landscape well into the future. Projections indicate that coal demand is yet to reach its zenith, with estimates hovering around 1.3-1.5 billion tonnes by 2030, with continued peaking anticipated between 2030 and 2035, as per the Economic Survey 2022-23.
Table 1: Coal Demand Projections
Year Projected Coal Demand (Billion Tonnes) 2029-2030 1.3-1.5 2047 2
Steadfast Power Generation
Despite global pressures to shift away from coal, India's reliance on this indispensable resource persists, fueled by a burgeoning economy and sustained energy needs. Between 2021-22 and 2022-23, electricity generation from coal-based power plants surged by 10%, with no discernible decline observed in the latter fiscal year over the former. Moreover, there were no reports of coal-based power plant shutdowns attributable to shortages during this period.
Table 2: Coal Contribution to India's Energy Landscape
Aspect Percentage Contribution to Energy Mix Approximately 73% Electricity Generation by Coal Around 75% Coal Production (September 2023) 67.33 million tonnes (MT) Cumulative Coal Production (FY' 23-24) 428.38 million tonnes (MT) Coal Imports (April-September FY 2023-24) 124.53 million tonnes (MT)
Insights from Energy Dynamics
Insights from the India Climate Energy Dashboard (ICED), launched by NITI Aayog in July 2023, underscore the nation's energy resilience, with primary energy supply registering a commendable 4.0% compound annual growth rate (CAGR) during 2012-22, excluding the exceptional COVID years of 2020 and 2021. Looking ahead, projections from the India Energy Security Scenarios (IESS) 2047 model envision a growth trajectory ranging from 3.3% to 3.5% under various scenarios, including net-zero and business-as-usual (BAU).
Navigating Global Imperatives
While global calls for transitioning away from coal intensify, the practicalities facing developing nations like India, heavily reliant on coal, paint a more nuanced picture. Transitioning from coal remains a formidable challenge, with no immediate prospects on the horizon. Consequently, stakeholders within the coal mining sector remain largely unaffected by transition scenarios. However, acknowledging broader environmental and social considerations, the Ministry of Coal has established a Sub-Committee tasked with addressing the holistic closure of abandoned/legacy mine sites, encompassing environmental, social, and economic dimensions.
Resilience Amid Uncertainty
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