Saturday, 05 Oct, 2024
As of August 25, 2024, the cumulative achievement for FY 2024–25 in terms of coal dispatch to the power sector is 325.97 MT, as opposed to 313.44 MT for the same period the previous year. Image Source: IANS
India's goal for green energy transition by 2030 is to achieve 500 gigawatts (GW) of non-fossil fuel installed capacity, which includes 280 GW of solar power and 140 GW of wind power projects.
As per the latest data released by the Ministry of Coal, the cumulative production for FY 2024-25 as on August 25, 2024 has significantly increased to 370.67 MT as compared to 346.02 MT during the same period in FY 2023-24, reflecting a growth of 7.12 percent. The demand of coal has increased to 1,233.86 Million Tonnes (MT) in 2023-24 from 1,115.04 MT in 2022-23. Along with the demand, the production of the coal has also increased from 893.19 MT in 2022-23 to 997.26 MT in 2023-24.
Source: Ministry of Coal
For the period of 2008–09 to 2013–14, the coal output CAGR was 2.8 percent. Only 725.39 MT of coal would have been produced in 2022–2023 if this trend had persisted. The government's persistent proactive measures have resulted in a 5.20 percent CAGR, with 893.19 MT of production in 2022–2023 as a high. This 167.80 MT increase in production (savings of approximately Rs 2.71 Lakh Crore) has contributed to a decrease in the import of coal.
Source: Ministry of Coal
As of August 25, 2024, the cumulative achievement for FY 2024–25 in terms of coal dispatch to the power sector is 325.97 MT, as opposed to 313.44 MT for the same period the previous year. Despite the massive opening storage of 47 MT at TPPs as of April 1, 24, this growth has been achieved. This guarantees a consistent coal supply to meet the power sector's energy needs. The government has been taking several steps to increase the production of coal in the country and cut down its dependence on the import of the commodity which is a commendable step. The above data shows that the dispatch of coal to the power sector has increased in the current fiscal as compared to the previous fiscal. This indicates that the power sector in India is still dependent on coal as its primary fuel. This raises some doubts regarding India’s plan of moving from non-renewable to renewable sources of energy.
Source: Ministry of Coal
India's goal for green energy transition by 2030 is to achieve 500 gigawatts (GW) of non-fossil fuel installed capacity, which includes 280 GW of solar power and 140 GW of wind power projects. This is a crucial step towards achieving sustainable energy independence. But accomplishing these ambitious objectives will not be easy. These include concerns with grid integration, insufficient infrastructure for power evacuation, inconsistent rules, difficulties with land acquisition, and the requirement for significant investments of $350–400 billion over the following ten years. To fulfil its climate pledges and achieve its goals for renewable energy, India must work hard and intelligently in this area.
According to the REN21 Renewables 2024 Global Status Report, India is ranked fourth in the world for installed capacity of renewable energy (including large hydro), fourth for wind power, and fifth for solar power.The country has increased its ambition to 500 GW of non-fossil fuel-based energy by 2030 at the COP26. With large hydro and nuclear included, India's installed non-fossil fuel capacity has expanded by 396 percent in the last 8.5 years to exceed 205.38 GW, or almost 45.8 percent of the nation's total capacity (as of July 2024). With a 9.83 percent annual growth in renewable energy additions in 2022, India had the highest growth. As of July 2024, the installed solar energy capacity has expanded thirty times in the last nine years, to 87.2 GW.
The National Institute of Solar Energy (NISE) has projected that India has a solar energy potential of 748 GWp. Since 2014, the installed capacity of renewable energy, especially large hydro, has expanded by over 128 percent.
The table below shows India’s installed capacity of Renewables as of July 2024.
Soure: Invest India
India pledged at COP26 to achieve net-zero emissions by 2070 and to cut anticipated carbon emissions by 1 billion tonnes by 2030. These obligations demand a swift switch to renewable energy sources. These climate goals directly lead to the ambition of 500 GW non-fossil fuel capacity by 2030.
The government has taken several steps to accelerate the Indian economy’s transition to one powered by green energy. The major schemes include National Green Hydrogen Mission, Production Linked Incentive (PLI) Scheme for solar modules, Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM), Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) I & II and PM Surya Ghar Muft Bijli Yojana.
Along with the green energy transition, the government has also taken a number of steps in order to reduce imports and maintain a constant supply of coal in the country. Some of the steps are- Regular reviews by Ministry of Coal to expedite the development of coal blocks, Single Window Clearance portal for the coal sector to speed up the operationalization of coal mines, Project Monitoring Unit for handholding of coal block allottees for obtaining various approvals / clearances for early operationalization of coal mines. Apart from this the Ministry of Coal has requested the Ministry of Environment, Forest and Climate Change (MoEF&CC) to allow coal mines with existing Environmental Clearances to increase their production up to 40 percent, to hike by up to 50 percent without Fresh Environmental Impact Assessment or Public Consultation. Talking about the import of coal, according to the current import policy, consumers themselves may freely import coal (under Open General Licence) based on their own needs and commercial discretion.
For ease of doing business, the Ministry of Coal has established a Single Window Clearance System (SWCS) portal. The Ministry’s unique project, SWCS, aims to develop a platform for obtaining multiple clearances for early operationalization of coal mines, which would ultimately lead to an increase in the nation's coal production through a single entry point. In order to provide a boost to the mining sector, 100 percent Foreign Direct Investment has also been allowed for commercial mining. Due to these efforts by the Government, the country has witnessed a massive leap in coal production from 566 MT in FY 2013-14 to 893 MT in FY 2022-23 with a CAGR of 5.2 percent.
In order to move towards green energy, the government needs to strike a balance between the coal production which is the backbone for a number of industries and the green energy transition which is the need of the hour.
