Context: India’s coal reliance has risen to 79% in FY2024, as per the MOSPI’s latest Energy Statistics in India. Renewable energy sources have not seen any meaningful rise in the share of the total energy produced in the past decade, despite the push for renewable energy.
Relevance of the topic:
Prelims: Key highlights of the MoSPI’s Energy Statistics in India 2025.
Mains: Reasons behind high reliance on coal.
Key Stats in the Energy Sector
- The share of coal in India’s total energy generation increased to 79% to 16,906 petajoules (PJ) in 2023-24, about two percentage points more than previous year (MoSPI’s Energy Statistics in India 2025).
- Coal has consistently accounted for over 70% of India's energy output since 2014-15. Despite increased domestic production, coal import dependence remains high (26%), peaking at 31% in 2019-20.
- Crude oil’s share has been at 6% in 2023-24. This share has reduced from 2014-15 when it was 11% in 2014-15.
- Natural gas was 7% of the total energy produced in 2023-24, down from 9% in 2014-15.
- Renewable energy sources (hydro, solar, nuclear) have not significantly increased their share, standing at 7% in 2023-24 compared to 6% in 2014-15. Their share in total energy production has always been under 10% in the past decade.
- Estimated potential for generation of energy from renewable resources has reached 2109 GW as of March 2024. The highest potential for generation of energy comes from wind at 1163 GW (55%), followed by solar energy 749 MW (35.5%) and large Hydro.
- India’s total renewable energy-based electricity generation capacity: 203 GW (2024).
- India’s ambitious renewable energy target: 500 GW from non-fossil sources by 2030.
Major Initiatives related to Renewable Energy Transition:
- Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM-KUSUM): Focuses on solarisation of irrigation pumps.
- PLI Scheme for Solar PV Modules: Promotes domestic manufacturing of solar panels.
- Pradhan Mantri Suryodaya Yojana: Aims to provide rooftop solar to households.
- Solar Parks and Ultra Mega Solar Power: Encourages large-scale solar power projects.
- Green Energy Corridor Scheme: Facilitates transmission infrastructure for renewable energy.
- National Green Hydrogen Mission: Focuses on developing green hydrogen technology.
- National Bioenergy Programme: Promotes the use of biofuels.
- Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA): Aims to provide electricity to all households.
- Green Energy Corridor (GEC): Facilitates the transmission of renewable energy.
- National Smart Grid Mission (NSGM) and Smart Meter National Programme: Modernises the electricity grid.
- Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME): Promotes the adoption of electric vehicles.
Reasons for High Reliance on Coal despite Renewable Energy Transition Efforts:
- Stable and Reliable Energy Source: Coal-based power plants provide consistent base load electricity, essential for meeting India’s growing energy demands. Unlike intermittent renewable sources (like solar and wind), coal ensures uninterrupted power supply.
- Economic Viability: Coal is one of the cheapest energy sources in India due to vast domestic reserves. Setting up coal-based power plants has lower upfront costs compared to renewable infrastructure. RE technology requires large capital investment, and large contiguous land, which are in short supply.
- Employment and Socio-economic Factors: Coal mining and associated industries provide jobs to millions, especially in coal-rich states like Jharkhand and Chhattisgarh. Phasing out coal would impact livelihoods and local economies, making the transition politically sensitive.
- Infrastructure Constraints to scale RE Energy: India has a well-established network of coal-based thermal power plants, which would require significant investment to replace. There is inadequate infrastructure for transmission of RE generated in remote locations to load centres.