Why the coal is indispensable source of energy in India
The world is highly dependent on fossil fuels, which produce 80% of the total energy supplied. In 2022, oil, coal, and gas accounted for 30%, 27%, and 23% of the world’s total energy, while solar and wind energy sources together contributed only 2.4%.
Coal abundance in the country makes it the most important fuel for energy and coal-based thermal power plants are providing power at an affordable price to the country.
India is dependent on fossil fuel, particularly on coal for nearly 70% of its energy. Over 70% of India’s electricity needs are met by coal. Coal would continue to dominate in the power sector in the absence of cost-effective storage of renewable energy that has been generated.
But, the country will have to make better use of its existing resources to meet rising demand, limit exposure to new coal resources, and invest in energy storage capabilities to integrate a larger share of renewable energy into the power grid in order to maintain economic growth while decarbonizing.
The Economic Survey 2023-24 stresses on continued reliance on thermal power, particularly coal in order to provide base load for renewable deployment along with diversification of energy sources such as biofuels, nuclear, and renewable energy.
India will not be at a disadvantage if it uses more coal to meet the rising energy demand from the same thermal capacity over the next 20 years.
In India, coal has always been considered as the primary source (raw material) for electricity. Because the demand from the power sector was much more than the availability of coal in the last 10 years, no serious thought has gone into any other use for coal.
India’s share in total pollution in the world is far less than its share of the global population. China today with just about 17% of the world's population accounts for about 30% of global emissions. Whereas India's share in the global population is 16%, and responsible for only 6%–7% emissions, according to an analyst.
Coal when it is burnt releases carbon dioxide gas which is a major contributor to climate change. Even COP26 climate submit recognizes the role of coal in climate change and urges member nations to reduce its use.
For first time, the COP28 climate talk recognized that fossil fuels are the main culprit of climate change and called for transition away from fossil-fuels to renewable energy.
Reasons why coal is an indispensable source of energy and will continue to be so.
Coal-fired power contributes substantially more to output than to overall costs, helping to keep electricity tariffs affordable for consumers – as India still has a large poor population.
Most Abundant Source
Coal abundance in the country makes it the most important source of energy. Coal-based generation from existing power plants is the least expensive and most affordable source of power in the country.
Limited Energy Capacity
Despite ramping up renewable capacity, both solar and wind can not reach beyond 40% of total energy capacity (energy mix) - what about the rest 60%. So, using coal for electric production for the next two decades has no problem in India. It can propel India's growth.
Reliability Issue in Renewable Sources
Reliable supply of energy becoming critical to providing the nation with 24-hour electricity. Renewable sources are not 100% reliable and they can never replace 100% conventional sources of energy as the sun doesn’t always shine, and the wind doesn’t always blow — create an impediment to renewable energy. Having a steady source of energy is becoming essential.
Hydro depends upon monsoons. One needs to have power plants for base loads. MW scale storage for renewables is still far off. Only coal, gas fired and nuclear power can provide the base load.
Energy-efficient Features
Transition to renewable energy requires energy-efficient features to be inculcated into operating equipment such as ACs for both domestically and commercial usage.
Transition To Renewable Energy is a Financial Challenge
Transitioning away from fossil-fuels to renewable energy sources could be a financial challenge for India and major developing countries such as Russia, Brazil and China because of high dependency of these countries on revenues generated from fossil-fuels, according to a study by the International Institute of Sustainable Development (IISD).
Variability of Solar and Wind Resources
Wind and solar energy are erratic resources, with "variability" being especially exposed during times of high demand. For instance, sunlight is abundantly available during daytime in the summers. But in the evenings, domestic consumption of electricity rises as people return to their homes after work and that time there is no sunlight available outdoors. Hence there is a mismatch between the supply and demand of energy.
There are also seasonal variations. During the monsoon, wind energy is abundant while sun energy is barely available.
Spatial variability is another factor. States like Gujarat, which are close to the shore, have more wind and can generate more wind energy than states like Rajasthan, which are dry and receive more sunshine hence can produce more solar energy. Therefore, using renewable energy would basically need a balancing act.
Renewable Energy
Renewable energy is produced from natural resources that are replenished at a faster rate that they are used. For example, sunlight and wind are constantly replenished. The main motivation behind replacing fossil fuels sources (coal, oil and gas) with renewable energy sources is to reduce and eventually stop greenhouse gas emissions and stop rapidly changing climate.
Generating energy from renewable sources emits lower emissions than burning of fossil-fuels.
The 21st century, solar energy, the most abundant source of energy, would be a big medium for energy needs. Because it is pure, sure, and secure. The sun will always shine even if all other energy sources run out. Pure, as it contributes to environmental protection rather than contaminating it. And secure as it's a powerful emblem and the source of inspiration for Atma Nirbhar Bharat.
While the percentage of electricity generated from coal will decrease from 74% to 46% by 2040, the amount of electricity generated from renewables will rise significantly, from 18% to around 45% by that time in India. It is estimated.
As per the COP21 obligations, India’s renewable capacity should be 40% of the total capacity by 2030 and once it will implement its 175 GW renewable programme that will be achieved.
At COP 26, India has revised its promise to increase non-fossil fuel energy capacity to 500 GW (from 175 GW) by 2030, draw 50% of its energy needs from renewable energy sources and cut carbon emissions by 1 billion tonnes by the same year.
The environment is pivotal, we owe our duty and responsibility towards it to ensure that we do not pollute or damage it.
High Dependency on Coal
India is largely dependent on imports of fossil fuels to fulfill its rising energy needs by at least 2030, India's dependence on energy imports is expected to exceed 53% of the country's total energy consumption. About 80% of India's electricity generation comes from fossil fuels. In 2017, India generated more power than it needed and exported a little amount of it.
In the financial year 2019, more than 54% of India’s energy needs were met by coal production. Only less than 3% of the nation's energy demands were satisfied by renewable technology; the majority came from coal and other fossil fuels.
During non-solar hours and the post-monsoon season — when hydro supply is low — Coal is especially essential to meeting more than 80% of the peak demand throughout the evening and night.
The minister emphasized the critical role of coal in the energy security of the nation, saying that for the next 30-40 years, India will continue to rely on coal for meeting its energy needs. An increase in coal production now became necessary for meeting rising demand for power.
Being a key player in India's energy mix, coal accounts for around 72% of electricity generation in the country.
In a significant move towards making the country self-reliance in the energy sector, the Union minister for coal and mines said that India aims to reduce its coal import dependency on other countries by bringing it down to 2% in the financial year 2024-25.
Any forecasts about India's dependency on coal are fraught with uncertainty due to the country's fast growing demand for electricity.
India, while expanding its renewable energy, has declared that coal will continue to be a vital energy source until it achieves the status of a developed nation in the world marked by geopolitical unrest.
Dependency on coal must be reduced
Since carbon emissions are considered to be the primary cause of global warming, nations have made commitments to achieve carbon neutrality by different deadlines.
Reducing dependency on coal is a key step toward achieving carbon neutrality and for this, countries have to compensate for their carbon emissions by sequestering an equivalent amount of carbon from the atmosphere.
Because it is the most polluting fossil fuel, coal use in particular has drawn criticism.
Carbon Tax has been proposed by some leaders as an alternative to make sure that the cost of damage the coal causes to the environment is to be reflected in the price of coal. This could prove to be the most effective approach for reducing carbon emissions.
However, high carbon taxes can drastically reduce coal output and negatively impact living standards unless alternative energy sources step up to make up the difference.
Several influential people have suggested a carbon tax as an alternative to make sure that the cost of damages coal causes to the environment is to be reflected in its price.
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