We Can't Cut Down Coal Immediately; Instead We Should Phase Out Thermal Power: Montek Ahluwalia

Policy experts opine that India is focusing on a long-term energy transition, where coal will continue to be part of the energy mix for the next few decades. It argues that developed countries have historically contributed more to greenhouse gas emissions

As the United Kingdome (UK) officially shut down its last remaining coal power plant on Monday, policy experts said coal will continue to be a part of India's energy mix for the next few decades, given that it is still a developing country with significant energy needs.

By closing its last coal power plant, the UK has become the first G7 nation to do so amid calls for a global coal-free energy system by 2040.

The world's first coal power plant opened in London in 1882, and until 2012, coal accounted for 39 per cent of the UK's electricity generation.

Global energy think tank Ember said the closure of the UK's last coal plant means that more than a third of OECD countries are now coal-free, with three-quarters expected to eliminate coal power by 2030, in line with global climate goals aimed at limiting warming to 1.5 degrees Celsius.

The International Energy Agency's (IEA) ‘Net Zero by 2050’ report recommends that developed countries phase out unabated coal by 2030, while developing countries should aim to do so by 2040 to remain on track for global net-zero emissions by 2050.

The term "unabated" in this context refers to electricity production that does not use technologies designed to capture and reduce greenhouse gas emissions. These developments occur as developed countries push their counterparts in the developing world to accelerate the phase-down of unabated coal power.

India, the world's second-largest consumer of coal for electricity generation after China, saw the share of coal-fired power generation rise to 75 per cent in 2023-24 from 71 per cent in 2019-20. According to the IEA, while coal consumption fell in Europe and the US in 2023, it rose by eight per cent in India and five per cent in China.

That said, India's coal usage for power generation began several decades later than that of developed nations. While the UK's first coal power plant opened in 1882, India established its first major thermal power plant, the Hussain Sagar Thermal Power Station in Hyderabad, in 1920. Policy experts opine that India is focusing on a long-term energy transition, where coal will continue to be part of the energy mix for the next few decades.

Sunil Dahiya, an independent analyst, said that while coal will not disappear in the near future, India must reduce harmful emissions from the sector by deploying advanced air pollution control technologies and improving efficiency to curb carbon emissions.

According to climate activist Harjeet Singh, India has made remarkable progress in renewable energy, but the intermittent nature of these sources and the lack of scalable battery storage mean that coal still underpins its power supply and industries like steel and cement.

"Yet, the cost of coal goes far beyond emissions -- it destroys ecosystems, displaces communities, and deepens environmental injustice. India must urgently shift away from coal, and the international community must provide the financial and technological support needed for a just transition -- for both people and the planet," he said.

Montek Singh Ahluwalia, former deputy chairman of the erstwhile Planning Commission, said in a recent webinar organized by the think tank Centre for Social and Economic Progress that India can't cut down coal immediately and it is hypocritical in the west to focus solely on coal while ignoring oil and natural gas.

"However, if we are going to achieve net-zero emissions by 2070, we must recognise that we need to phase out thermal power. We should indicate to the world that India's emissions will increase for a while, then peak, and eventually decline. Right now, there's a lot of misunderstanding in the west about India's willingness to reduce emissions, which is not true," he said.

Sunita Narain, the director general of the Centre for Science and Environment, echoed similar sentiments, saying that India is currently dependent on coal, as it remains the cheapest form of energy available.

"We need to talk about a different future for coal. We must clean up coal -- not just for climate change but also for local air pollution. We will still need to invest, and that's where the world needs a conversation."

India has repeatedly emphasised that it is still a developing country with significant energy needs and that coal remains a crucial part of its energy mix because it is a reliable and affordable source of electricity. It argues that developed countries have historically contributed more to greenhouse gas emissions, having relied on fossil fuels for their economic development. Therefore, developed nations should take the lead in reducing emissions while allowing developing countries more time to transition to cleaner energy sources.

Union Environment Minister Bhupender Yadav had said earlier that the country is committed to meeting the energy needs of its population and "will also have to rely on coal power until it achieves developed country status".

He said the nation cannot solely depend on "importing oil and gas" to meet its energy demands.