India’s rapid economic growth has ignited a voracious appetite for electricity. While renewable energy sources have expanded significantly, coal remains the backbone of the nation’s power grid.
During the first half of 2024, soaring temperatures and a burgeoning population pushed electricity demand to unprecedented heights. To meet this surge, India turned to its coal-fired power plants. This reliance is concerning, given the country’s ambitious renewable energy goals.
Coal consumption surged nearly 10% in 2023, outpacing global demand growth. Despite substantial investments in wind and solar, coal still fuels over 70% of India’s electricity generation. The nation boasts an impressive 195 gigawatts of renewable capacity, a 25-fold increase in a decade but, the peak demand reached a record 250 gigawatts in May, highlighting the gap between supply and demand.
However, the challenge extends beyond energy supply. Coal is a major employer, supporting millions of jobs directly and indirectly. The railway network, crucial for transportation, is heavily reliant on this sector. In fact, passenger trains were canceled during the 2022 heatwave to prioritize coal delivery.
Balancing economic growth, energy security, and climate goals is a complex challenge for India. While transitioning to a cleaner energy mix is essential, Coal’s grip on the power sector, it seems, will remains strong for another 20 years.
Reference- The Hindu, Economic Times, Mercom India, MNRE website, International Energy Agency website