Dynamite News Coal to remain a dominant source of India's power generation over the next decade: S&P GCI
India's energy future is set to remain heavily reliant on coal. Read further on Dynamite News:
New Delhi: India's energy future is set to remain heavily reliant on coal, even as the country navigates challenges and opportunities in the realms of oil, LNG, and renewable energy.
According to a comprehensive outlook by S&P Global Commodity Insights (GCI), India's strategic priorities in energy security, affordability, and sustainability are shaping its dynamic energy landscape.
Pritish Raj, Managing Pricing Editor for Asia Thermal Coal at S&P Global Commodity Insights, asserted that coal is poised to retain its status as a cornerstone of India's power generation.
As one of the fastest-growing economies globally, India's soaring power demand necessitates a substantial increase in coal consumption.
Raj emphasised, "As energy security becomes utmost priority of one of the fastest growing economies in the world, India's power demand and, in turn, coal consumption will continue to rise exponentially over the next decade."
Despite significant strides in domestic coal production, which is projected to reach between 1.5 to 1.7 billion metric tonnes by 2030, coal imports will remain vital due to ongoing challenges related to the quality of domestic coal and transportation inefficiencies.
Raj said, "We expect India's domestic production to easily be in the range of 1.5-1.7 billion mt by 2030, and imports to stay stable at over 150 million mt over the next 5-6 years."
Raj noted, "Investments in clean energy are in the right direction, but with the intermittent nature of renewables, higher cost in the development, production and transmission phase due to low scale will keep coal as a major driver of power generation."
The intermittent nature of renewable energy and the higher costs associated with its development and transmission will ensure that coal continues to be a major driver of India's power generation in the foreseeable future.
Joel Hanley, Global Director of Crude & Fuel Oil Markets at S&P Global Commodity Insights, highlighted India's complex energy trilemma of ensuring security, affordability, and sustainability. (with Agency inputs)