Report Emphasizes Coal’s Continuing Dominance In Indian Energy Sector For Next Two Decades, Calls For Active Phase-Down Policies

A recent report from the Indian Institute of Management (IIM) in Ahmedabad highlights coal’s continued importance in India’s energy landscape over the next two decades. However, transitioning away from coal will require proactive policies regarding critical minerals.

The report emphasizes that achieving net zero emissions by 2070 will necessitate significant contributions from nuclear power and renewable energy sources. Titled ‘Synchronising energy transitions towards a possible Net Zero for India: Affordable and Clean Energy for All,’ the report was released on Wednesday.

It was released by Prof Ajay Kumar Sood, Principal Scientific Adviser (PSA) to the Government of India, alongside dignitaries including Dr V K Saraswat from NITI Aayog, and Dr A. K. Mohanty, Secretary of the Department of Atomic Energy (DAE) and Chairman of the Atomic Energy Commission (AEC), among others. The report underscores the urgency for decarbonization in the electricity sector well ahead of the 2070 target for achieving net-zero energy systems.

“There is no silver bullet to achieve net-zero. The transition needs multiple pathways to be adopted with the co-existence of myriad technologies in our energy basket. Coal is projected to continue until the next two decades as the backbone of the Indian energy system,” it said.

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According to the report, India’s emissions are projected to fall within the range of 0.56 to 1.0 billion tonnes of carbon dioxide (btCO2) by the year 2070.

“It is expected that the remaining gap in emissions will be offset through sequestration in forestry and tree cover as envisaged in our Nationally Determined Contributions (NDCs),” the report mentioned.
“Clean, affordable electricity at low levelized cost of electricity (for consumers) can be achieved in net-zero pathways, especially with a focus on nuclear power and renewable power. Widespread electrification of end-use sectors, i.e. up to 47-52 per cent of the electricity share in Total Final Electricity Consumption (TFEC), compared to 18% at present,” it said.

The report was commissioned by the Office of the Principal Scientific Adviser to the Government of India in November 2021 and undertaken by IIM Ahmedabad as a study project. It received partial funding (one-third) from the Nuclear Power Corporation of India Ltd (NPCIL). Prof Ajay Sood, in his opening remarks, described the report as a comprehensive analysis, consolidating insights from all power generation sectors into one document.

He emphasized its significance in providing a holistic perspective on the Indian energy sector and outlining potential pathways for transitioning to net zero while promoting development. Dr. Anil Kakodkar, former Chairman of the Atomic Energy Commission (AEC), commended the study as timely and crucial, underscoring its focus on energy transitions from an Indian standpoint. He also stressed the importance of developing technologies for cost-effective hydrogen production.

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