New Delhi: India could entirely eliminate its dependence on imported thermal coal by 2029 if it accelerates renewable energy capacity addition to 50 gigawatts annually, according to a report released by Climate Risks Horizon on Monday. The move could save the country an estimated USD 66 billion in foreign exchange over five years starting 2025.
Extending the timeline to 2034, the total savings could reach at least USD 173 billion, the report stated.
The think tank pointed out that India's electricity sector continues to rely significantly on imported coal. In 2023–24 alone, the country imported around 206 million tonnes of thermal coal, roughly 20 percent of total usage, at a cost of USD 21 billion.
Between 2013 and 2023, thermal coal imports rose by 58 percent in volume and 124 percent in value. The increase has been fuelled by unpredictable international prices and a weakening rupee. The report highlighted that import levels typically spike during the summer months due to higher demand from cooling systems.
India imported about 2,128 million tonnes of thermal coal during the decade in review, with an annual increase of 3.7 percent. Compared to 2013, import volumes have jumped by 40 percent.
The report flagged both physical and financial vulnerabilities linked to imported coal. Physical risks include supply disruptions from geopolitical tensions or natural calamities, while financial risks are amplified by unstable energy prices, affecting both power producers and end users.
India’s electricity consumption per capita has risen from 957 kilowatt-hours in 2013 to 1,331 kWh in 2022. The study linked this growth to urban expansion, industrial activity, and an increase in electric appliances, particularly during extreme weather events like heatwaves.
“A focused plan to aggressively expand renewable energy could significantly reduce coal imports,” the report noted.
India’s current renewable capacity stands at around 151 gigawatts from solar and wind, or about 200 gigawatts when including hydro, small hydro, and biogas. To meet its target of 500 gigawatts of non-fossil fuel capacity by 2030, the country needs to add 50 gigawatts annually.
In 2024–25, India added 24 gigawatts, the highest yearly addition so far—but still short of the required pace.
BI Bureau
