India’s energy landscape is at a crossroads as it confronts the pressing dilemma of coal dependency. The nation, which has championed coal as essential for its energy security and economic growth, is under increasing pressure from both energy experts and environmental advocates to decarbonize its coal-fired power plants. Ashok Lavasa, a former high-ranking official in the finance and environment ministries, recently highlighted the importance of addressing the coal issue, asking, "If coal is king, then can it be a benevolent king?"
As the world's third-largest carbon emitter, India's reliance on coal is pivotal to its energy supply. Coal-fired plants supply over 70% of the country’s electricity, a figure that has remained unchanged for decades. However, the environmental implications are alarming, with these plants contributing more than 40% of the nation’s annual carbon emissions. Notably, nearly three-quarters of the electricity consumed comes from coal.
Faced with an electricity demand that has surged over 9% from 2021 to 2025, far exceeding earlier forecasts, India’s consumption is projected to double by 2030. Meanwhile, renewable energy sources, although accounting for 46% of installed capacity, face limitations due to their intermittent nature, generating power only when conditions are favorable.
Furthermore, India's energy storage capabilities are lagging behind, limiting the ability to harness renewable energy effectively. Rajiv Porwal, director of Grid India, underscores the necessity of thermal energy for consistent power supply and grid stability, warning that imbalances could lead to outages akin to those experienced in Spain.
Considering these factors, India is exploring avenues to reduce emissions from its coal energy sector rather than completely abandoning coal. A report from the Centre for Science and Environment (CSE) suggests that decarbonizing thermal plants could decrease greenhouse gas emissions by approximately 30%. This reduction would significantly contribute to India’s target of lowering carbon intensity by 45% by 2030 under international climate agreements.
However, significant challenges persist. Coal power plants typically operate at a minimum of 55% capacity, making it difficult to quickly adjust to the rising availability of renewable sources. Experts advocate for operational efficiency improvements and the implementation of carbon capture technologies, even though current systems capture less than 1% of global emissions.
Additionally, some experts suggest substituting coal with agricultural residue in thermal plants, a strategy that has proven effective in reducing coal usage in certain regions. Nonetheless, broader adoption remains a challenge, hindered by regulatory compliance across various states.
The transition toward cleaner coal energy will undoubtedly incur substantial financial implications. The exact costs and funding responsibilities remain unresolved, underscoring the complexity of this energy dilemma as India navigates its path toward a sustainable, energy-secure future.
