India, the world’s most populous nation, finds itself caught in a difficult balancing act: meeting the surging electricity needs of its rapidly growing economy while striving to achieve its climate goals. Despite significant investments in renewable energy, coal still reigns supreme, powering over 70% of India’s electricity needs.
In April, Prime Minister Narendra Modi celebrated India crossing the milestone of 1 billion metric tons of coal and lignite production, highlighting the country’s “commitment to ensuring a vibrant coal sector.” This emphasis on coal underscores the challenges India faces in transitioning to cleaner energy sources.
The country’s electricity demand is projected to grow by at least 6% annually for the next few years, driven by factors like rising living standards, increased access to air conditioning and cooling devices, and the growing middle class. This demand surge has led the Indian government to order coal plants to operate at full capacity during peak summer months, despite the country’s increasing renewable energy capacity.
While India has made strides in renewable energy, installing 195 gigawatts of wind and solar power over the past decade, it needs to ramp up its efforts even faster. The country has set an ambitious target of reaching 500 gigawatts of clean energy by 2030, but experts warn that achieving this goal will require installing 50 to 60 gigawatts of clean power annually.
The reliance on coal is deeply rooted in the Indian economy, providing millions of jobs, not just in mining but also in allied sectors like railways. The government’s decision to prioritize coal freight trains over passenger trains during peak summer months in 2022 illustrates the crucial role coal plays in the country’s transportation network.
The transition to clean energy faces several obstacles, including a lack of sufficient battery storage for renewable energy to replace coal during nighttime hours, policy decisions, political factors, and supply chain challenges. While the government has announced plans to invest in battery storage, experts emphasize the need for accelerated action, especially considering the falling global prices of battery storage technology.
Beyond internal challenges, India also calls for greater international support from developed nations in the form of funding and technological expertise to accelerate the clean energy transition. The country’s reliance on coal, while economically necessary for now, poses a significant challenge to achieving its climate goals. The future of India’s energy landscape hinges on finding a sustainable balance between economic growth and environmental responsibility.
