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The Indian government outlined a transition plan to create a domestic thermal coal stock of 1.8-2.5 billion tonnes by 2030-32, following which the intention is to halt coal production for the next ten years, even though the country has not signed any international agreements to phase down coal output and usage.
The Ministry of Coal projected coal demand to reach around 1.5-1.8 billion tonnes by 2030. In response to any sudden fluctuations in demand, a buffer stock of over 0.5-1 billion tonnes is being planned.
The coal ministry is also considering scenarios where renewable energy sources may not be able to meet the electricity demand. Even if the targeted 500 GW of renewables capacity is achieved by 2030, a base energy source will still be required.
Initially, it was estimated that 1.5 billion tonnes of coal would be sufficient to meet the projected electricity demand of 350 GW by the end of this decade, a senior official in the coal ministry said.
However, due to this year's unexpected increase in demand, the government is set to build surplus capacity, he added. The peak power demand hit 240 GW this year.
Private captive and commercial mines are expected to contribute close to 30% of coal production, sources said.
Several states are reverting to constructing new thermal power units or expanding existing ones to meet the rising power demand. Approximately six states are planning new thermal power units totaling around 15 GW, local media reported.
The coal ministry is hopeful that ting to constructing new thermal power units or expanding existing ones to meet the rising power demand. Approximately six states are planning new thermal power units totaling around 15 GW, local media reported.
The coal ministry is hopeful that coal production can be paused with surplus capacity in place by 2030. If needed, Coal India Ltd (CIL) can scale up production.
While CIL is expected to be the major coal supplier, the ministry believes that the private sector would also contribute significantly through their captive and commercial coal blockswhich would ensure business sense and energy security.
According to Union Coal and Mines Minister Pralhad Joshi, India's coal production is predicted to reach 1 billion tonnes by the end of the ongoing fiscal year. Joshi added that the country's electricity demand is expected to double by 2030, necessitating a reliance on coal to meet these needs.
(Writing by Riley Liang Editing by Harry Huo)
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