India emphasizes coal dependence in its new economic policy document

The views and opinions expressed are solely those of the author.

Most discussions about India's annual budget are dominated by rising taxes on the middle class. But much of the media, both in India and in the West, glossed over the country's decision to increase its coal consumption.

An economic survey released as a prelude to the financial budget often indicates the future direction of the country in various areas of governance, such as energy and the environment. This year's survey—like those of previous years—clearly indicates that the country will not reduce its coal consumption or abandon its commitment to economic development that requires affordable and abundant energy for hundreds of millions of people.

The future is coal

Coal dominates India's energy landscape, accounting for more than 55% of the country's commercial primary supply. In the power sector, the role of coal is even more pronounced, with coal-fired power plants generating approximately 70% of India's electricity. It is also a critical source for a number of manufacturers, including steel, sponge iron, cement and paper.

With the country's energy demand expected to at least double by 2047, the survey makes it clear that coal will remain the backbone of India's energy mix for an extended period.

“Despite being one of the world's fastest-growing economies, India's annual per capita carbon emission is only about a third of the global average,” the survey said in an apparent rebuttal to criticism Westerners to India's carbon dioxide emissions. bogeyman of climate extremists.

In addition, the survey says, “India's dependence on oil imports should not be replaced by dependence on imports of solar PV panels.” He recommended a balanced response to climate change and criticized policies that made reducing emissions a top priority at the expense of development.

The Indian government also took the opportunity to criticize carbon import taxes levied on its products the European Union The survey points out the hypocrisy of developed nations who criticize India's CO2 emissions while increasing their own emissions and fossil fuel consumption. This paradoxical behavior is called “comedy”.

There is nothing but coal

At 35 trillion Btu (British Thermal Units), India's primary energy consumption is third highest in the world The country is also the third largest consumer of electricity. As the world's fifth largest economy and home to more than 1.4 billion people, India's energy consumption is expected to more than double by 2040. The International Energy Agency predicts that India will represent almost a quarter of the growth in global energy demand from 2019 to 2040. .

Recent data from the Central Electricity Authority (CEA) shows that coal-fired power generation has been steadily increasing. In fiscal year 2022-23, coal-fired power plants generated 1.043 billion units of electricity, about 10% more than the previous year.

This upward trend has continued into 2023-24, with coal-fired power generation reaching 919 billion units in just the first eight months of the fiscal year. In fact, CEA has said that coal will remain the dominant source of power generation at 54% by 2030.

The growth rate of coal production in the country over the last three years has been the highest in the country's coal production history. [GT1] New coal mine approvals earlier this year not only boosted production, but also generated 40,560 jobs.

India's enthusiasm for coal is driven by several factors: abundant domestic coal reserves, the need for reliable and affordable energy to fuel industrial growth, and energy security concerns. The significant budget allocations for coal production, infrastructure and technology reflect a pragmatic approach to meet the country's growing energy demands and support its ambitious economic goals.

The only sensible thing left for India is to stop wasting time and resources on so-called renewables so as not to jeopardize its energy security. Moreover, not even an unprecedented increase in wind and solar capacity would destroy coal as a primary energy source.

Vijay Jayaraj is a science and research associate at the Co₂ coalitionArlington, Virginia. he He holds a postgraduate degree in energy management from Robert Gordon University and a master's degree in environmental science from the University of East Anglia, both in the UK, and a bachelor's degree in engineering from Anna University, India.

Vijay Jayaraj is a research associate at the CO2 CoalitionArlington, Va., and holds a master's degree in environmental science from the University of East Anglia, United Kingdom. He resides in Bangalore, India.

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