The share of coal-fired electricity in India’s power mix is projected to rise to 77 per cent by 2025, subsequently decreasing to 71 per cent in 2030 and 52 per cent in 2050 as renewable power gains traction

 During the ongoing 28 UN Climate Change Conference (COP28) in Dubai, billionaire Gautam Adani has underscored the need for a balanced approach that considers energy costs and availability while pursuing green ambitions. Amidst pledges from 118 governments to triple global renewable energy capacity by 2030, achieving a consensus on reducing the share of fossil fuels in global energy production remains a challenging task.

Adani, leading the coal-to-edible oil conglomerate, drew attention to India’s unique position as the world’s third-largest primary energy consumer, with a per capita electricity consumption significantly below the global average. With a population of 1.4 billion, India faces the intricate task of managing energy costs, availability, and green objectives while surpassing its UNFCCC commitment to reduce emissions intensity by 45 percent from the 2005 level by 2030.

“The fastest-growing economy must balance its energy cost, energy availability, and green energy objectives while continuing to accelerate its massive green ambitions,” Adani asserted. The Adani Group, pledging a substantial investment of USD 75 billion by 2030, assumes a pivotal role in achieving emission intensity reduction.

However, India’s reliance on coal poses a significant hurdle in meeting global climate targets. The Intergovernmental Panel on Climate Change advocates a drastic reduction in fossil fuel use, including the complete phasing out of unabated coal, to limit global warming to 1.5 degrees Celsius by 2050. India, currently relying on coal for 73 percent of its electricity, resists an abrupt shift due to concerns about increased electricity costs and potential supply shortages.

Projections indicate that the share of coal-fired electricity in India’s power mix is expected to rise to 77 per cent by 2025, subsequently decreasing to 71 per cent in 2030 and further to 52 per cent in 2050 as renewable power gains traction. However, an overnight transition away from coal, which currently serves as the most affordable feedstock in India, presents challenges, including potential increases in electricity bills and supply constraints, given the insufficient availability of alternative fuels like natural gas or nuclear power.