Madhumitha Jaganmohan
Research expert covering climate and environmental sustainability
Coal energy industry in India - statistics & facts
Thermal power remains by far the largest source of power generation in India, driven by the rich domestic coal reserves, a scarcity of natural gas reserves, and restricted growth in other non-conventional energy sources. During the financial year 2022, the per capita electricity consumption in India was approximately 1.3 megawatt-hours. As the demand for electricity in India surges, reliance on thermal power is anticipated to increase, driving the demand for coal further in the coming years.
India’s thermal power capacity
As of February 2024, India had a total thermal installed capacity of 240 gigawatts. Of that amount, 210 gigawatts was the installed capacity of coal, and the rest was attributable to lignite, diesel, and gas. During the same time, the private sector of the India’s power industry generated over 73.5 thousand megawatts of the country’s power, followed by the state-owned and centrally-owned power industries. Adani power is the leading private thermal power producer in India, with a power generation capacity of nearly 15.2 gigawatts as of financial year 2023. This thermal power generation was mostly powered by growing coal consumption in the country, which peaked at over 20 exajoules in 2022.India’s transition from coal to green energy
India’s coal-fired power plants serve as base-load generators and are progressively adding renewable energy plants by offering grid-stabilizing power. In 2020, savings related to replacing coal with renewable energy in India were estimated at two billion U.S. dollars and are forecast to reach 17 billion U.S. dollars by 2025. The growth in India’s coal-fired power generation has led to reliable and economical electricity nationwide, which is crucial for a fast-developing nation but comes with the cost of high levels of pollution from the power sector in India. This dependency on coal in India underscores the vital importance of navigating growth while upholding sustainable practices.The change that is needed
As India advances through its energy transition, harmonizing energy demands with environmental conservation emerges as a critical imperative. The coal sector in India stands at a pivotal juncture, where decisions made today will shape the country’s future of energy production and environmental preservation. Embracing innovation, advocating for renewable energy integration, and championing sustainable practices are key to charting a greener and more prosperous path for India's energy landscape.
