In India, new coal proposals worth 11.4 GW were introduced in India in 2023 than in any other year since 2016, in both the governmental and private sectors. According to an annual poll by San Francisco-based Global Energy Monitor, the year also witnessed a rise in the approval of new coal projects as well as the restarting of many that had been put on hold for a long period.
India’s recent rise in coal proposals and predictions for 2023 has raised questions about how well it aligns with international climate goals. India proposed new coal proposal totalling 11.4 GW, the biggest since 2016, according to an annual report by the San Francisco-based Global Energy Monitor, with significant participation from both the public and private sectors.
According to the report, government-owned firms support 75% of the new capacity, indicating a considerable commitment from both the central and state governments. Furthermore, important projects like the 1.6 GW Raikheda expansion and the 1.2 GW Kajurda power station were offered by private companies like Essar and Adani Power. In addition, the permission procedure for 2.2 GW of previously shelved capacity—mostly in the private sector—was restarted in 2023.
Global coal capacity increased noticeably in 2023, rising by 48.4 GW, mostly because of China. The COP28 agreements, which committed countries to shift away from fossil fuels and increasing the use of renewable energy, run counter to this trend.
“India cannot afford to immediately move away from coal without being mindful of the current energy needs of its billion-plus population. So it is stepping up clean energy, but the scale of the energy demand is so huge, and it will take more time before it can be relied upon as an affordable option. But, the onus lies on the developed countries that have historically contributed to most of the emissions, to really step up their action at a pace that is required,” said Srestha Banerjee, director, Just Transition at Delhi-based organisation iForest.
Lower coal retirements have also been observed in the United States and Europe, two significant participants in the global energy market, which has led to an overall increase in coal capacity. Particularly, the US retired just 9.7 GW in 2023, indicating a slowdown in comparison to other years and leading to requests for an acceleration of retirement in order to fulfill climate obligations.
“If India achieves its renewable energy targets by 2030, and simultaneously activates its advanced-stage construction capacity, it will possess ample power generation capability to satisfy escalating demand. Any further investment in coal capacity could potentially initiate a subsequent wave of stranded asset formation within the power sector, and divert resources and funding from the trajectory of renewable energy expansion, effectively entrenching India’s dependency on coal,” warned Sunil Dahiya, South Asia Analyst at the Centre for Research on Energy and Clean Air (CREA).
India has taken a balanced approach to climate action, stressing the need for developed countries to take the lead in global climate efforts while also highlighting the importance of equality and climate justice. But the nation must strike a balance between the need to switch to cleaner energy sources and meeting the demands of a growing population.
With 26.7 GW of operational coal capacity, Chhattisgarh presently holds the lead, although Uttar Pradesh’s projected and under-construction capacities could soon overtake it. According to a recent government-commissioned report, coal will continue to play a major role in India’s energy mix for the next twenty years, requiring a cautious approach to transition.
In order to address the climate crisis and increase economic productivity, experts stress the significance of a clean energy transition. They advise against making excessive investments in coal since they could result in stranded assets and impede the growth of renewable energy.