India’s energy transition is under global scrutiny as the country continues to rely heavily on coal for its energy needs. Despite the progressing international shift towards cleaner energy, India, the world’s second-largest consumer of coal after China, remains dependent on this resource. Given the country’s developmental context and increasing energy demands, India faces a complex path toward reducing its coal reliance while balancing economic growth and environmental sustainability.
India's coal usage for power generation began in the early 20th century, which was several decades later than that of developed nations. The country’s first major thermal power plant, the Hussain Sagar Thermal Power Station in Hyderabad was established in the year 1920. This marked the beginning of India’s reliance on coal for power generation, which has since expanded to become a critical component of its energy infrastructure. Today, coal-fired power plants account for approximately 75% of India’s electricity generation.
India's heavy reliance on coal for energy is driven by its abundance, affordability, and ability to support the nation's rapid industrial growth. Recent years have seen a surge in coal consumption as electricity demand has increased to fuel economic growth and urbanization. Between 2019 and 2024, coal's share in India's electricity generation rose from 71% to 75%, highlighting its centrality in powering industries such as steel, cement production and other key sectors.
However, this dependence on coal presents significant challenges, particularly as India faces growing pressure to reduce carbon emissions and shift towards renewable energy sources. While countries in the West have been reducing their coal usage, India's reliance on the same has only intensified, which underscores the substantial gap between developed and developing countries in switching to cleaner energy.
The Energy Transition: A Slow but Steady Shift
India's journey towards cleaner energy is already underway, but it's a process that will take considerable time. Although the country has made notable progress in renewable energy, particularly in solar and wind power, these sources remain intermittent. Unlike coal, which provides a stable and consistent energy supply, renewables are variable. India currently lacks the necessary large-scale battery storage technology to effectively store renewable energy. As a result, coal continues to be the backbone of India’s power supply.
Sunil Dahiya, an independent energy analyst, emphasizes that coal will continue to be a significant part of India's energy mix for the foreseeable future. However, to meet climate goals and reduce emissions, India must focus on improving the efficiency of its coal plants and implementing advanced pollution control technologies. This approach could help mitigate harmful emissions while allowing India the time it needs to transition towards a cleaner energy future.
India's heavy reliance on coal is not just a matter of energy supply, it is also intricately linked to economic realities. Coal is the cheapest source of energy in India, and its domestic abundance reduces dependence on costly imports of oil and gas. This economic factor makes it difficult for the country to rapidly phase out coal, especially as the country seeks to balance economic growth with environmental commitments.
The Socio-economic Challenges of Phasing Out Coal
The transition from coal is not just about technology and energy, it is also about people. India’s coal sector is a significant source of employment, providing livelihoods to millions of workers, particularly in coal mining regions. A sudden shift away from coal could lead to job losses, destabilize local economies, and worsen socio-economic disparities.
Harjeet Singh, a climate activist, highlights the broader consequences of India’s continued reliance on coal, including environmental degradation, displacement of communities, and deepening environmental injustices. Singh calls for a "just transition" that ensures coal-dependent communities are not left behind as the country moves towards cleaner energy.
This concept of a just transition has gained traction in global climate discussions, where developing nations like India argue that the international community must provide financial and technological support to help them phase out coal without sacrificing economic development or social stability.
India’s Renewable Energy Ambitions: Striking a Balance
Despite its dependence on coal, India has set ambitious goals for renewable energy. The country aims to install 500 gigawatts of renewable energy capacity by 2030, a significant step toward meeting its Paris Agreement commitments. However, transitioning to a renewable energy-dominated grid is not without challenges.
Renewable energy sources like solar and wind are increasingly affordable, but they are inherently variable. India’s solar power potential is immense, given its geographical location, but the intermittency of solar and wind energy, combined with the lack of scalable battery storage, limits their ability to fully replace coal in the short term.
In response to these challenges, Sunita Narain, Director General of the Centre for Science and Environment, suggests that India must “clean up coal” in the short term by investing in technologies that reduce both local air pollution and carbon emissions. This approach would allow India to continue using coal while making progress toward environmental goals.
At the same time, experts like Montek Singh Ahluwalia, former deputy chairman of the Planning Commission, caution against an overly simplistic view of India’s coal dependency. He argues that it is hypocritical for the West to push developing nations to eliminate coal while continuing to rely on oil and natural gas. According to Ahluwalia, India's emissions will peak as the country develops, but they will eventually decline as renewable energy takes hold and coal is phased out.
Global Responsibility: India's Call for Support
India has repeatedly emphasized the historical responsibility of developed nations when it comes to climate change. Having relied on coal and other fossil fuels to fuel their industrial revolutions, wealthier nations have contributed significantly to global greenhouse gas emissions. India, as a developing country, argues that it should be granted more time to transition from coal while meeting its energy and developmental needs.
Bhupender Yadav, India's Environment Minister, reiterates this position, stating that while India is committed to addressing climate change, it cannot solely rely on importing expensive oil and gas. Coal remains crucial to India's energy security until the country achieves developed status, and a full transition to renewable energy will require time.
As the world moves toward a coal-free future, India’s energy journey serves as a reminder of the complex realities faced by developing countries. The transition to clean energy cannot be achieved through one-size-fits-all policies. It requires nuanced strategies that take into account each country’s unique socio-economic context and development stage.
The Path Forward: A Balanced Approach
India’s energy future lies in finding a delicate balance between meeting its growing energy demands, reducing emissions, and ensuring social equity. While coal will remain a part of India’s energy mix for the next few decades with appropriate policies, technological advancements, and international support, the country can gradually shift towards a more sustainable and renewable energy-based future.
While developed nations call for an end to coal, India’s transition must be paced and supported by global cooperation. The road ahead will require not just financial and technological investment but also a recognition that developing nations face different challenges and timelines on the path to a cleaner, greener planet.
