India Keeps Coal Power at Full Throttle

India’s commitment to coal remains stronger than ever, and the government’s latest move to extend the mandate for coal-fired plants to run at full capacity until February 28 is proof of that. In a world where renewables may be slowly gaining ground, coal continues to power over 70% of India’s electricity needs.
The mandate, which first kicked in this October, was meant to ensure the country didn’t fall into an energy crunch amid heatwaves and droughts that slashed hydropower generation. Now, its mandate been extended into the new year, keeping the coal-fueled machinery running full throttle for a little while longer.
This isn’t just a short-term ploy.
India is on track to add a whopping 90 gigawatts (GW) of coal-fired capacity by 2032, and it’s not slacking off in the meantime. In fact, 2024 marks the second consecutive year of hitting a 4 GW coal capacity installation rate—solid, if not spectacular, given the country’s hefty energy demands. And while the government is pushing hard to increase domestic coal production (surging by 32% in the first half of this fiscal year), it’s still relying on imports to fill in the gaps. In the first quarter of this year, imports ticked up by 0.9%, and the first half saw the country producing nearly 80 million tons of coal from captive and commercial mines.
Despite the push toward cleaner alternatives like wind and solar, India’s growing population and industrial demand have kept coal firmly in the driver’s seat. The International Energy Agency (IEA) has predicted that global coal demand will remain close to the 2024 record-high levels over the next three years, in large part fueled by India and China. India’s power needs are skyrocketing, and coal is still the reliable backbone for maintaining a stable energy grid in the face of unpredictable weather events.

About Parvin Faghfouri Azar

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