India, a country known for its robust efforts towards renewable energy, will however still retain coal as its primary energy source. Projections by Climate Action Tracker suggest that fossil fuels account for over half the installed energy capacity in the nation. By 2029-2030, these figures are projected to hit 266 gigawatts, a stark increase from the 678 million tonnes in 2021-2022. Coal consumption in the country is expected to witness an increase of 40% by 2031-32, elevating the domestic coal requirement to nearly 1,018.2 million tonnes.
The Reasons behind the Growing Coal Demand
Several factors contribute to this increasing reliance on coal. The iron and steel industry heavily depends on coal, and alternative fuel sources are limited. In addition, the continued expansion of India’s economy, with an anticipated average annual GDP growth of 7.4% between 2022 and 2024, fuels the demand for coal.
Furthermore, India’s push for domestic coal mining through both Coal India and private coal blocks auctioning indicates a potential hike in coal usage. Coal usage may instead increase in India as it plateaus in other parts of the world, including China. This boost in coal production is pegged to attract investments, best-in-class technology, and create more job opportunities within the sector.
Understanding Coal as a Fuel Source
Coal, often referred to as ‘Black Gold,’ is a fossil fuel found in the form of sedimentary rocks. It is a conventional energy source widely used across many industries such as iron and steel, in steam engines, and for electricity generation, referred to as thermal power. The leading global coal producers include China, United States, Australia, Indonesia, and India.
Distribution of Coal in India
In India, Gondwana Coal Fields, at 250 million years old, hold 98% of the total reserves and account for 99% of the nation’s coal production. This coal forms India’s metallurgical grade as well as superior quality coal. It is predominantly found in Damodar (Jharkhand-West Bengal), Mahanadi (Chhattisgarh-Odisha), Godavari (Maharashtra), and Narmada valleys.
Tertiary Coal Fields, aged between 15 – 60 million years old, largely confined to extra-peninsular regions. These include areas like Assam, Meghalaya, Nagaland, Arunachal Pradesh, Jammu and Kashmir, Himalayan foothills of Darjeeling in West Bengal, Rajasthan, Uttar Pradesh, and Kerala.
Classification and Quality of Coal
Coal is classified based on carbon content, including Anthracite, Bituminous, Lignite, and Peat. Anthracite is the highest grade with 80-95% carbon content but is found sparsely in Jammu and Kashmir. Bituminous coals, with 60-80% carbon content, are primarily found in Jharkhand, West Bengal, Odisha, Chhattisgarh, and Madhya Pradesh.
Lignite, having 40 to 55% carbon content, possesses high moisture content and is located in Rajasthan, Lakhimpur (Assam), and Tamil Nadu. The lowest grade, Peat has less than 40% carbon content and is in the initial transformation stage from organic matter such as wood to coal.
Steps Towards a Post-Coal Economy
For establishing a post-coal economy, it is essential to re-train society dependent on coal. Recognizing the need to equip displaced workers with new skills for employment opportunities in the renewable energy sector is vital. The American federal transition programs, such as solar training and education for professionals, can serve as a blueprint for India to design and develop its strategies.
The clean energy transitions could be financed by development financing institutions, with investments guided by the Climate Change Finance Unit for promoting policies, green financing, and capacity building. This unit takes the onus of serving as the Finance Ministry’s nodal point on matters related to climate finance, providing analytical inputs to the National Climate Policy Framework, and actively participating in discussions on climate finance issues in international forums like the G20 and other multilateral climate change regimes.
