50-GW new RE Every Yr Can End Coal Imports By '29

New Delhi: If India adds 50 gigawatts of renewable energy (RE) every year, it could completely stop importing thermal coal by 2029 and save about $66 billion in foreign exchange between 2025 and 2029, according to a new report published on Monday.

The total savings could be at least $173 billion from 2025 to 2034, the report prepared by think tank Climate Risks Horizon said. The climate and energy think tank said the country's electricity sector remains heavily dependent on coal imports, with around 20 per cent or 206 million tonnes of thermal coal imported in 2023-24 at a cost of $21 billion. Thermal coal imports have risen by 58 per cent between 2013 and 2023, but the value of these imports has increased by 124 per cent due to volatile global prices and a weakening rupee, it added.

The report said imports surge during the summer months, when cooling demand pushes up electricity consumption. Over the said period (2013 to 2023), India imported around 2,128 million tonnes of coal, mostly thermal coal used for power generation. The import of thermal coal has been increasing steadily at 3.7 per cent annually and has gone up to 40 per cent since 2013. The think tank said India's dependency on imported coal poses both physical and financial risks. Physical risks arise with any disruption in the supply of imported coal, either due to unforeseen political changes or natural disasters.