The Centre expects to create a domestic thermal coal stock of 1.8-2.5 billion tonnes (bt) by 2030-32, after which it plans to halt production for the next decade. Even though India has not signed any worldwide agreement on the phase-out of coal production and use, this transition plan is being implemented.
According to Ministry of Coal forecasts, coal demand will be close to 1.5-1.8 bt by 2030. According to officials, a buffer stock of more than 0.5-1 bt is intended to cover any unexpected demand changes.
The ministry is also considering what would happen if renewable energy (RE) sources could not supply the electricity demand. Even if renewable energy reaches the desired 500 gigatonnes (gw) by 2030, a base energy source will be required. It was previously anticipated that 1.5 billion tons of coal might supply the projected 350 gigatonnes of electricity demand by the end of this decade. However, because this year’s demand has defied all expectations, we should build surplus capacity as a country.
The Ministry of Coal stated that it intends to create 1.4 billion tons of coal stock by 2027 and 1.5 billion tons by 2030. However, officials currently imply that a “readily available coal stock” is planned from 2030 to 2040. The plan has also been modified, with several states returning to building new ones or expanding existing ones to meet the unexpectedly increased power demand. There will be more than adequate coal supply until 2040. It is projected that RE would be able to outperform thermal capacity and low-cost energy storage options. Even if not, Coal India Ltd (CIL) can increase coal production.
This year, we will surpass one billion tonnes of production. The demand for electricity is expected to treble by 2030, and the country would require coal to meet the demand. India did not agree to triple renewable energy because it required a transition away from coal. India has consistently stated on global climate platforms that it will not lower its fossil fuel demands in the medium term, citing energy security. Under the energy transition, the country has also mentioned its green energy plans.