India’s coal reserves, fourth largest in the world, provide it with a cheap source of energy. However, the mining of coal causes severe damage to the environment:
Despite the damage caused by coal mining, it is expected to contribute the dominant share to India’s electricity production for decades to come. Even with annual growth rates above 10%, the share of renewable sources in India is unlikely to reach even 10% of the energy mix before 2040. (Solar energy still provides only about 1 per cent of the electricity generated in the country).
India’s reliance on coal is expected to persist even in 2040s, with an envisaged share of 42%-50% in energy mix. A lower growth trajectory of renewable energy in view of the challenges and uncertainty of prices, storage costs, grid connectivity and parity make it over-ambitious to expect them to be central for India’s development.