India's Coal Dependency: Challenges in Clean Energy Transition

As India navigates its energy landscape, the reliance on coal remains a critical issue, significantly complicating the country’s transition to cleaner energy sources. Despite global pressures to reduce carbon emissions, India's coal-fired thermal plants continue to supply over 70% of its electricity, a trend that has persisted since the early 2000s. According to the International Energy Agency (IEA), India is the world's third largest carbon emitter, and the energy sector is responsible for more than 40% of the country's total carbon emissions, with coal being the largest contributor.

The urgency of addressing this reliance is underscored by the increasing electricity demands, which have risen by more than 9% between 2021 and 2025, surpassing earlier predictions of 6.6%. The country's electricity demand is expected to double by 2030, presenting a formidable challenge to both energy security and environmental sustainability. Ashok Lavasa, a former secretary of the Union Ministries of Finance and Environment, highlighted this dilemma at a recent event, asserting, "You can’t wish away coal. The question is, if coal is king, then can it be a benevolent king?"

India's commitment to achieving net-zero emissions by 2070, along with its target to reduce emissions intensity by 45% by 2030 under the United Nations Framework Convention on Climate Change, adds further complexity to the situation. Although the country has made strides in renewable energy, contributing 46% to its total installed capacity, the intermittent nature of solar and wind energy limits their role in ensuring a stable and reliable electricity supply. Rajiv Porwal, Director at Grid India, noted the current inadequacy of energy storage solutions, stating, "There is no other option unless we have large-scale storage quantities in the system."

The Centre for Science and Environment (CSE) recently reported that decarbonising coal-based thermal plants could potentially reduce India's greenhouse gas emissions by 30%. However, implementing such changes is fraught with challenges. Thermal plants often operate at a minimum capacity of 55%, even when renewable sources are available, complicating operational flexibility. Ramesh Veeravalli, a member of India's Central Electricity Regulatory Commission, pointed out the need for increased efficiency in thermal plants, emphasizing that, "How low can we go to bring down the minimum running level threshold is the question."

Additionally, innovative approaches such as carbon capture technologies and the utilization of agricultural residues in place of coal have been suggested as potential strategies to mitigate emissions. However, these technologies have produced limited results thus far, capturing only about 0.1% of global emissions according to estimates by the World Resources Institute.

Despite these hurdles, experts agree that a systemic overhaul is necessary to reduce emissions from coal-fired power plants, but significant investment and planning will be required. The question of who will bear the associated costs remains a pressing concern. As India grapples with these realities, the path towards a sustainable energy future remains uncertain, highlighting the delicate balance between energy demands and environmental responsibilities.

The implications of India’s coal dependency extend beyond its borders, as the nation plays a pivotal role in global climate discussions. The challenges that India faces could serve as a microcosm for other developing nations that rely on fossil fuels while striving to meet international climate commitments. Without substantial changes, the vision of a cleaner energy future may remain just that—a vision, rather than a reality.