India aims to halve imported coal in power stocks by 2023, zero by 2026

22 Dec 2023 CW Team

Joshi stated that the current proportion of imported coal in TPP stocks is 4.6%, down from nearly 10% the previous year. He announced the government's intention to continue this downward trend, aiming for a reduction to 2% by the next year and ultimately eliminating imported coal from TPP stocks by 2025-26. This announcement was made during the launch of the ninth round of commercial coal mine auctions, which includes a total of 26 mines, with 12 in Madhya Pradesh, eight in Chhattisgarh, five in Jharkhand, and one in Telangana.

Despite the rapid growth in renewable energy generation in India, Joshi stressed that coal will remain a crucial component for ensuring the country's energy security. He pointed out that India's electricity demand is expected to double by 2030, reaching 335 GW, and to meet this demand, the country will rely on coal. Joshi expressed optimism that domestic coal production would surpass the 1 billion ton mark this year, the highest in India's history.

Acknowledging the rising demand for energy, the government has revised its plan to increase the coal-fired power generation capacity to about 80 GW by 2030. This adjustment aims to address the challenges associated with the high costs of energy storage for renewable sources. Despite efforts to promote renewable energy, the government has directed thermal generating stations, including Independent Power Producers (IPPs), to mandatorily blend imported coal at 6% of their total capacity until March 2024, an increase from the previous limit of 4%.

In addition, the government has extended the emergency clause of the Electricity Act, 2003, requiring imported coal-based power plants to run at their full capacity until June 30, 2024. India, as the world's third-largest consumer of energy, continues to experience a significant annual increase in electricity demand, with an 8.18% surge in overall power generation recorded from April to October compared to the same period in the previous year.

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In an effort to boost domestic coal production and diminish reliance on imported coal for power generation, the Indian government has announced a target to reduce the share of imported coal in thermal power plant (TPP) stocks from the current 4.6% to 2%. Union Minister for Coal, Mines, and Parliamentary Affairs Pralhad Joshi revealed this goal on December 20, emphasising the government's commitment to further decrease the share of imported coal to zero by 2025-26 under Prime Minister Narendra Modi's leadership. Joshi stated that the current proportion of imported coal in TPP stocks is 4.6%, down from nearly 10% the previous year. He announced the government's intention to continue this downward trend, aiming for a reduction to 2% by the next year and ultimately eliminating imported coal from TPP stocks by 2025-26. This announcement was made during the launch of the ninth round of commercial coal mine auctions, which includes a total of 26 mines, with 12 in Madhya Pradesh, eight in Chhattisgarh, five in Jharkhand, and one in Telangana. Despite the rapid growth in renewable energy generation in India, Joshi stressed that coal will remain a crucial component for ensuring the country's energy security. He pointed out that India's electricity demand is expected to double by 2030, reaching 335 GW, and to meet this demand, the country will rely on coal. Joshi expressed optimism that domestic coal production would surpass the 1 billion ton mark this year, the highest in India's history. Acknowledging the rising demand for energy, the government has revised its plan to increase the coal-fired power generation capacity to about 80 GW by 2030. This adjustment aims to address the challenges associated with the high costs of energy storage for renewable sources. Despite efforts to promote renewable energy, the government has directed thermal generating stations, including Independent Power Producers (IPPs), to mandatorily blend imported coal at 6% of their total capacity until March 2024, an increase from the previous limit of 4%. In addition, the government has extended the emergency clause of the Electricity Act, 2003, requiring imported coal-based power plants to run at their full capacity until June 30, 2024. India, as the world's third-largest consumer of energy, continues to experience a significant annual increase in electricity demand, with an 8.18% surge in overall power generation recorded from April to October compared to the same period in the previous year.

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