Vijay Jayaraj
Most discussions about India's annual budget focus on tax increases for the middle class. But the country’s decision to increase coal consumption has been ignored by many media entities in India and the West.
The economic survey as a precursor to the fiscal budget often heralds the country's future direction in various governance areas such as energy and environment. As in previous years, this year's survey makes clear that China will neither reduce coal consumption nor abandon its commitment to economic development for hundreds of millions of people who need affordable and adequate energy.
The future is coal
Coal dominates India's energy landscape, accounting for more than 55% of the country's primary commercial supplies. In the power sector, coal's role is even more obvious, with coal-fired power plants accounting for about 70% of India's electricity. It is also an important source for a variety of manufacturers, including steel, sponge iron, cement and paper manufacturers.
The country's energy demand is expected to at least double by 2047, and the survey clearly shows that coal will remain the mainstay of India's energy mix for a long time to come.
“Although India is one of the fastest-growing economies in the world, its annual per capita carbon emissions are only about one-third of the global average,” the survey said, apparently refuting Western criticism of India's carbon dioxide emissions. .
Furthermore, the survey said, “India's dependence on oil imports should not be replaced by dependence on solar photovoltaic panel imports.” It recommended a balanced response to climate change and criticized policies that prioritize emissions reductions at the expense of development.
The Indian government also took the opportunity to criticize the EU for imposing carbon import taxes on its products. The survey pointed out that it is hypocritical for developed countries to criticize India for carbon dioxide emissions while increasing their own emissions and fossil fuel consumption. This self-contradictory behavior is called “comedy”.
There is no alternative but coal
India's primary energy consumption is 35 megaBtu (British thermal units), ranking third in the world. The country is also the third largest consumer of electricity. As the world's fifth-largest economy and home to more than 1.4 billion people, India's energy consumption is expected to more than double by 2040. one.
Recent data from the Central Electricity Authority (CEA) shows that coal-fired power generation has been growing steadily. In the 2022-23 fiscal year, coal-fired power plants will generate 1,043 billion kilowatt-hours of electricity, an increase of about 10% over the previous year.
This upward trend has continued until 2023-24, with coal power generation reaching 919 billion units in the first eight months of this fiscal year alone. In fact, CEA says that coal will continue to be the main source of electricity generation by 2030, accounting for 54%.
Over the past three years, the country's coal output has been growing at a faster rate than new coal mines approved earlier this year, boosting production and creating 40,560 jobs.
India's enthusiasm for coal is driven by several factors: abundant domestic coal reserves, the need for reliable and affordable energy to fuel industrial growth and concerns about energy security. Significant budget allocations for coal production, infrastructure and technology reflect a pragmatic approach to meeting the country's growing energy needs and supporting its ambitious economic goals.
The only smart thing for India to do is to stop wasting time and resources on so-called renewable energy sources, lest it jeopardize its energy security. In addition, even if wind and solar power generation capacity grows unprecedentedly, it will not replace coal as the main energy source.
This comment was first published on BizPac Reviews August 20, 2024.
Vijay Jayaraj is a scientific research assistant carbon monoxide2 allianceArlington, Virginia. he He holds a postgraduate degree in energy management from Robert Gordon University in the UK, a master's degree in environmental science from the University of East Anglia, and a bachelor's degree in engineering from Anna University in India.
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