Coal free by 2070? India’s push toward renewables won’t stop coal reliance for the next two decades
A worker pushes his bicycle under a line of cable trolleys transporting coal in Uttar Pradesh, India, on Nov. 19, 2021.
Money Sharma | Afp | Getty Images
There’s little doubt that India has made progress in its transition to renewable energy.
The country’s leaders have been optimistic about its path to net zero, making bold claims that 50% of its power generation will come from renewables by 2030, and 100% by 2070.
However, coal production continues to soar and reliance on the fossil fuel won’t end any time soon as India struggles to find other ways to cool homes down and keep the lights on.
“India will not be able to survive completely without coal and there is no alternative for India in the coming 10 to 20 years,” said Anil Kumar Jha, former chairman and managing director of Coal India — the world’s largest coal producer.
“If you are hungry and don’t have cake to eat, will you eat bread or die hungry? That is presently what India is doing,” Jha told CNBC. “We don’t have an alternative to generate that amount of electricity, and will have to depend on coal.”
Fossil fuels, mainly coal, continue to make up 75% of India’s power supply, making it “the only fuel that India has in relative abundance,” said Neshwin Rodrigues, electricity policy analyst at Ember, a global energy think tank.
A man rides a motorcycle along a road past the National Thermal Power Corporation plant in Dadri on April 6, 2022.
Prakash Singh | Afp | Getty Images
Effects from climate change have triggered more than 700 heat waves in India over the past five decades, driving up electricity demand as more households purchase air conditioners.
“India is presently witnessing a rapid surge in electricity demand, driven by the electrification of numerous households, the burgeoning economy, and the increasing adoption of electric vehicles, infrastructure development, and cooling systems,” said Sooraj Narayan, Wood Mackenzie’s senior research analyst of power and renewables in Asia Pacific.
“This heightened power demand necessitates a reliable, cost-effective, and consistent power generation source, which coal currently fulfills,” he highlighted.
Whether we like it or not, coal will continue to have a role to play in India.
Sooraj Narayan
Wood Mackenzie
Data from the International Energy Agency showed that electricity consumption in India from air conditioners increased by 21% between 2019 and 2022.
Nearly 10% of the country’s electricity demand comes from space cooling and this will increase ninefold by 2050, the IEA said.
Simultaneously, India’s coal consumption has rapidly increased.
The country’s coal production rose to 893 million tons in 2022 to 2023, a 14% growth from 778 million tons in 2021 to 2022, according to data from the Ministry of Coal.
Jha estimated coal production could reach 1,335 million tons in 2031 to 2032.
This raises the question about whether India will be able to reach its 2030 target of achieving 50% of its energy requirements from non-fossil fuel sources. As of now, energy analysts don’t think it’s achievable.
“Coal remains a reliable fallback option for India to ensure consistent and dependable power generation, especially as it strives to meet the demands of a rapidly growing population and economy,” Narayan pointed out.
This could be the norm for India until after 2030 — when coal demand is expected to peak, according to Sumant Sinha, founder of Indian renewable energy firm ReNew Power.
“What we cannot afford as a country is essentially to shortchange our growth on account of a lack of power capabilities. Whether we like it or not, coal will continue to have a role to play in India,” Sinha told CNBC’s “Squawk Box Asia” on last week.
Unreliable renewables
Despite being able to produce cheap wind and solar energy, only 22% of India’s power generation is met by renewables.
All the analysts who spoke to CNBC agreed the country’s solar, wind and hydro energy capabilities are still unreliable as they are dependent on weather conditions and the climate.
“Renewable sources like solar and wind are inherently variable, relying on natural factors such as sunlight, wind and water availability. This variability makes them less dependable for meeting the nation’s burgeoning power demand,” Wood Mackenzie’s Narayan said.
A worker walks through the Tapovan Vishnugad hydropower plant project construction site in Uttarakhand, India, on Feb. 9, 2022.
Bloomberg | Bloomberg | Getty Images
The South Asian nation currently has around 180 gigawatts of installed renewable energy, and hydropower makes up half of that mix. However, more advanced infrastructure is needed to ensure it serves as a reliable alternative to coal in the future.
India experienced the driest August in more than a century when it received 36% less rainfall. Coal reliance that month grew by 13% compared to the year before.
“While India seeks to leverage hydropower to balance its grid, this source of renewable energy is not without its complexities,” Narayan said, explaining that projects are often delayed.
“The construction of dams and run-of-river projects for hydropower often encounters prolonged delays, extensive gestation periods, and is contingent on variable rainfall patterns.”
Solar and wind energy face the same hurdles as underdeveloped power grids curtail progress in the sector.
“India’s existing grid infrastructure is not fully equipped to handle the integration of variable renewable energy sources like solar and wind,” according to Narayan.
Investment is key
Ramping up investments — particularly in battery storage — may be the most significant way for India to meet its net-zero transition goals.
India currently has around 180 gigawatts of installed renewable energy and aims to reach 500 gigawatts by 2030, according to government agency Invest India.
“Grid-scale battery storage is costly, with supply chain disruptions further driving up prices due to events like the Covid-19 pandemic and geopolitical conflicts. These complexities render it challenging to rely solely on renewables for consistent and dependable power generation,” Narayan said.
Water being released from the Madupetty dam and hydro power station in Kerala, India.
Nurphoto | Nurphoto | Getty Images
Another issue is that renewables are a frontloaded investment where “all your investments happen on the day of installation. You pay for everything upfront,” said Rodrigues from Ember.
“The problem with that is that you require a lot of financing capacity, and there is limited financing capacity in India,” he added, warning that India’s net-zero goals cannot be met without foreign investments.
“Going forward, we need to find ways to first phase down coal, then we can talk about completely phasing it out.”
— CNBC’s Naman Tandon contributed to this report.
Leading electric vehicle analyst, author, and industry thought leaders Loren McDonald and Bill Ferro stop by Quick Charge to discuss EV Adoption’s acquisition by Paren, the “crisis” of EV charging reliability, and the real state of the EV market.
Depending on who you listen, EVs are either driving brands to record growth and are about cross that critical 10% of the overall market nationwide, or the future is bleak, the market is down, and EVs just aren’t selling. What’s really going on? Loren and Bill (probably) have some answers.
Today’s episode is sponsored by BLUETTI, a leading provider of portable power stations, solar generators, and energy storage systems. For a limited time, save up to 52% during BLUETTI’s exclusive Black Friday sale, now through November 28, and be sure to use promo code BLUETTI5OFF for 5% off all power stations site wide. Click here to learn more.
Source Links
Prefer listening to your podcasts? Audio-only versions of Quick Charge are now available on Apple Podcasts, Spotify, TuneIn, and our RSS feed for Overcast and other podcast players.
New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news!
Got news? Let us know!
Drop us a line at tips@electrek.co. You can also rate us on Apple Podcasts and Spotify, or recommend us in Overcast to help more people discover the show!
Read more: All my favorite EVs, racecars, and robots from Electrify Expo Austin.
FTC: We use income earning auto affiliate links. More.
Chevy EV owners in Texas who have Reliant as their electric utility can now charge for free at night with renewable energy.
Over 150 Chevrolet dealerships across Texas are now offering the Reliant Free Charge Nights plan to new EV buyers. With Free Charge Nights, customers can offset their charging costs by receiving credits for electricity used between 11 pm and 6 am. The plan is powered entirely by renewable energy, thanks to the purchase of renewable energy certificates (RECs).
Rasesh Patel, president of NRG Consumer, says the plan is about making power personal: “We’re excited to help Chevrolet EV drivers offset the cost of charging their vehicle all while having access to a renewable electricity plan.”
This collaboration aims to make EV adoption more appealing by making charging cheaper and greener. GM Energy’s chief revenue officer, Aseem Kapur, emphasized that partnerships like this help build the ecosystem needed to support an all-electric future: “The Reliant Free Charge Nights plan is a great example of how an automaker and an energy company can work together to make EV adoption an easy decision.”
Existing Reliant customers can also sign up for the Free Charge Nights plan. To get started, Chevrolet EV owners need to designate their vehicle on the GM Energy Smart Charging Portal before enrolling in the plan.
Reliant Energy, a subsidiary of NRG Energy, serves over 1.5 million customers in Texas, making it one of the largest electricity providers in the state.
Read more: Texas to get 1 GW AI-powered virtual power plant, enough to power 200,000 homes
If you live in an area that has frequent natural disaster events, and are interested in making your home more resilient to power outages, consider going solar and adding a battery storage system. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –trusted affiliate link*
FTC: We use income earning auto affiliate links. More.
Texas is about to get a major power boost – a new AI-powered virtual power plant (VPP) delivering capacity equivalent to 200,000 homes during peak demand.
NRG Energy is teaming up with Renew Home to bring nearly 1 gigawatt (GW) of capacity to the Texas grid by 2035, aiming to make it more resilient while helping residents save on energy costs.
The new VPP will rely on hundreds of thousands of smart thermostats and other connected home devices, making use of AI technology provided by Google Cloud. These devices, like Vivint and Nest smart thermostats, will be offered to eligible customers at no cost. By automating HVAC adjustments, they help shift energy use to when electricity is cheaper, cleaner, and less strained.
NRG and Renew Home have big plans for the VPP. Starting in spring 2025, the companies plan to roll out the program across Texas, installing these smart thermostats in homes served by NRG’s retail electricity providers. Eventually, they plan to add home battery storage and EVs to expand the power plant’s capabilities.
Texas has faced record-breaking energy demands, with peak usage hitting 85 GW in 2023. As the state’s population grows and extreme weather becomes more frequent, VPPs like this one could play a key role in stabilizing the grid. VPPs aggregate a lot of small-scale energy resources, from smart thermostats to home batteries, and use them to help balance supply and demand during times of high stress on the grid.
This nearly 1 GW VPP will be one of the largest of its kind in Texas. NRG’s president of consumer operations, Rasesh Patel, calls it a “pivotal step” for improving customer experience while making Texas’ energy infrastructure more sustainable and resilient.
In addition to Renew Home, NRG is working with Google Cloud to maximize the power plant’s effectiveness. Google Cloud’s AI and analytics tools will help predict weather conditions, forecast renewable generation, and optimize energy usage, all of which will help make energy management smoother for both customers and the grid.
Ben Brown, CEO of Renew Home, said:
NRG’s commitment to creating a more resilient and sustainable energy future while also making electricity bills more affordable makes them an ideal partner for co-developing this unique VPP program.
This initiative raises the bar for future-proofing our electricity infrastructure and delivering cost savings to customers.
Read: Chinese solar giant Trina sells its Texas factory a week after it opens
To limit power outages and make your home more resilient, consider going solar with a battery storage system. In order to find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and you share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –trusted affiliate link*
FTC: We use income earning auto affiliate links. More.
-
Sports2 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports7 months agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports1 year agoGame 1 of WS least-watched in recorded history
-
Environment1 year agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Sports3 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Business2 years agoBank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway