Coal Shortage

Coal Shortage

Subject: Geography

Section: Economic  Geography

Context- The India Energy Outlook 2021 report of the International Energy Agency (IEA) said energy use in India has doubled since 2000, with 80% of demand still being met by coal, oil and solid biomass.

Concept-

• On Friday, Tamil Nadu Chief Minister M.K. Stalin wrote to Prime Minister Narendra Modi, requesting him to ensure adequate supply of coal to the power-generating units in the State.
• In Maharashtra, Deputy Chief Minister Ajit Pawar said the State government planned to import coal to cope with the power crisis.
• The other top power-consuming State in the country, Gujarat, is also planning to import coal, according to reports.
• Decline in coal stocks and the resulting power outages in several States have spurred queries of renewable energy’s potential to fill in for the conventional resource.
• Earlier this week, coal stocks in more than 100 thermal power plants in India fell below the critical mark (less than 25% of the required stock) while it was less than 10% in over 50 plants across India.

Is there a coal crisis?

• Coal accounts for 55% of the country’s energy needs.
• The India Energy Outlook 2021 report of the International Energy Agency (IEA) said energy use in India has doubled since 2000, with 80% of demand still being met by coal, oil and solid biomass.
• Pandemic-related disruptions, however, prevented the stock-up of coal.
• Mining operations were halted to curb the spread of the virus. Mining activities were hampered during the monsoons, delaying arrival of stocks.
• With household demand for power picking up and the arrival of summer, combined with the sudden acceleration in economic activity, it has resulted in a demand-supply mismatch.
• The country had experienced a similar situation last October, but with peak summer approaching, the coal stock situation is more worrisome now because demand for power will be high.
• The energy de- mand will go up as urbanisation and the population increase. The IEA estimates that despite the shock from COVID-19, India’s demand is expected to grow by almost 5% a year till 2040.

What is the consumption pattern?

• Coal is abundantly available, has shorter gestation periods and coal-based plants have lower capital costs than hydel and nuclear plants, therefore, making it the most viable enabler of energy security in the country.
• The conventional resource’s capacity addition is further helped by the increased participation of the private sector in power generation.
• In Washington recently, Finance Minister Nirmala Sitharaman said India’s move away from coal will be hampered by the war in Ukraine.

Where does India stand on renewable energy sources?

• The report of the Central Electricity Authority on optimal generation capacity mix for 2029-30 estimates that the share of renewable energy in the gross electricity generation is expected to be around 40% by that financial year.
• A total of 90 GW of renewable energy capacity has been installed in the country as on February 28, as per government figures.
• This includes
  • 78 GW from solar power,
  • 13 GW from wind power,
  • 63 GW from bio-power,
  • 84 GW from small hydel power and
  • 52 GW from large hydel power.
• In accordance with the Prime Minister’s announcement at COP26 (the 2021 United Nations Climate Change Conference), the Ministry of New and Renewable Energy aspires to install 500 GW of electricity capacity from non-fossil fuel sources by 2030.