Sustainability of Coal as a Source of Energy in India

Abstract

Indian dependence on coal as a source of commercial energy is primarily attributed to the abundance of coal resources, unlike other fossil fuels such as oil or natural gas. Close to 60% of power generation capacity and 80% of actual power generation are coal-based. The aggregate coal resources—proven. Inferred and indicated have risen from around 70 bt at the time of coal nationalization in the early 1970s to over 300 bt currently. The capability of exploration and drilling for faster proving of coal resources has increased manifold. Indian coal has typically high ash and low moisture. However, through a process of continuous innovation in boiler design, adequate capability of using such coal has been created. As a result, almost all capacities for power generation created in main heartland are based on such a low-grade coal. Responding to the fast growth in demand, coal production and consumption in the country have increased manifold since nationalization. This has raised significant issues of environmental and social sustainability around coal mining as well as coal consumption in the power stations. Degradation of a vast tract of land, uprooting local tribal population leading to erosion of their culture and traditional impacts on forest cover are some of the impacts of coal mining that need to be mitigated, if not eliminated. Similarly, inadequate management of fly ash in power stations, emission of obnoxious gases, presence of particulate matter beyond acceptable norms, besides the problems associated with resettlement, and rehabilitation of local populace are the challenges at the point of coal consumption in power stations. Of late, in response to bidding the renewable tariff has reduced to levels not far away from the coal-based tariff. This is fast emerging as a major issue impacting sustainability of coal-based power in the country. However, considering affordability as a key policy determinant, it will still be necessary to focus on improvement in PLF of existing coal-based capacities for which substantial scope exists. Such improvement in PLF will lead to substantially higher generation of coal-based power reinforcing additional demand for coal. However, while creating new capacity, coal-based power is likely to lose out to solar on consideration of economics. The article proposes to deal with the interplay of these complex and conflicting issues and suggests an appropriate sustainable road map in keeping with Indian commitment at COP21.