Energy Security with Decarbonization Symposium 2023
Energy Security and Path to Carbon Neutrality in the Coal Value Chain
Organized by Japan Carbon Frontier Organization (JCOAL)
Co-Organized by Japan Organization for Metals and Energy Security (JOGMEC)

Energy Security and Path for Decarbonisation in India
6 September 2023
A.K. Saxena
The Energy and Resources Institute (TERI)
India

A.K. Saxena
Senior Director, TERI
24 August 2023

Contents
Energy Security in India : The Backdrop
Energy Sector Imperatives and Initiatives
LTotal Primary Energy Supply and Coal Supply Scenario & Initiatives
Coal Sector Reforms and Initiatives
India’s Commitment to Climate Action, Achievement and Outlook2

Energy Security in India : The backdrop•

Largest democracy in the world•

Home to one-sixth world’s population•A developing and growing economy•

Growing energy and electricity consumption : ~ 5% p.a.

•Per-capita energy and electricity consumption ~one-third of world average•

Human Development Index (HDI): despite an increase of ~ 50% in last 20 years,
the country still ranks in the medium HD category•

Variety of energy sources; significantly developed: dependent on imports >>energy security – a critical concern

Policies framed/modified in accordance with needs of a developing country, resource endowment
and emerging requirements

LEnergy Sector Imperatives and Initiatives

Energy Access

Affordability

L

Energy Equity

Commitment to Climate
ActionEnergy Security

Inclusive and Equitable
TransitionTotal Primary Energy Supply
Nuclear
2%

500

Renewables
4%400

NaturalGas
8%

300

200

Crude Oil
32%

Coal
54%

100--100

Production

Imports

Total primary energy supply (MToE), 2021-22(P)Exports

Stock changes

Coal Supply Overview
900

30%

23%

700

24%23% 23%

24%

24%
21%

20%
600

500
400

25%

20%
16%
14%

15%
12%

300

10%

200
5%
100
00%

Total Indigenous SupplySource: Ministry of Coal, Annual Report

ImportImport (%)

Import(%)

Coal Supply and Import(MMT)

26%

26%

800

o Non-coking coal constitutes majorcomponent (~93%), Coking coal (~7%)
o Import policy : coal can be freely imported(under Open General Licence) by theconsumers considering their needs based on
their commercial prudence.
o Coking Coal import by Steel Authority of India L
Limited (SAIL) and other Steel manufacturing
units – quantity and quality considerations.
o Non-coking Coal import byCoal based power plants,
cement plants,
captive power plants,
sponge iron plants,
industrial consumers andcoal traders.

Coal Import (2021-22)
OthersMozamb16%

Indonesia2%

Coal import (2021-22)
Others27%

ique3%USA
7%
South
Africa0%
Russia2%

Indonesia37%

o Major import fromIndonesia, Australia,
South Africa, USA &Mozambique

Mozambi
que2%
USA
3%
Australia
70%
SouthAfrica
19%

Coking Coal
Source: Ministry of Commerce & Industry▪ Coking Coal :Rs1030 billion▪ Non-coking coal :Rs 1257 billion.

Russia1%
Non-coking Coal

Australia
11%L

Coal blocks auction: 2020-2023
Mines auctioned (cumulative)
100879080706260514030L4450
312020100
Tranche-1

Tranche-2

Tranche-3

Tranche-4

Tranche-5

SCCL, 84, 9%

Coal Block Share (number, share(%)
Captive, 200, 20%

Non-CIL, 252, 26%
Source: PIB Release ID: 1911447, dated 28.03.2023; CMPDI, Dashboard-Auction portal

CIL, 445, 45%

Tranche-6

India Coal Sector Reforms and Initiatives• The Mineral Laws (Amendment) Act, 2020 (March,2020)➢ Removal of end use restriction to allow wider participation in auction of coal mines➢ Free trade of coal as producer can use, sell or export coal without restriction.
➢ Criteria of prior experience dispensed with.
➢ Partially explored coal blocks were also put on auction.

➢ Adoption of revenue-sharing model instead of rupees per tonne➢ Market-driven prices, as per National Coal Index➢ Rebate to mine allottees in case of early production➢ Rebate for quantity under Coal gasification/ Liquification.
➢ Coal Bed Methane allowed for mine allottees.
9Coal Sector initiatives in India•Mission Coking Coal (August 2021) : To augment coking coal production and supply and tomeet the demand of steel sector : 12 coking coal washeries of ~30 MTY being constructed.
• Coal Gasification Mission (September 2021):
o Target to gasify 100 MT of coal by 2030.
o Surface Coal/Lignite Gasification projects being developed.
o In October, 2022 strategic bilateral agreements were executed as part of surface coalgasification (SCG): MoU between (a) BHEL & CIL, (b) IOCL, GAIL & CIL• Coal Bed Methane (CBM):o CBM Policy 1997 for exploration and production;o Policy for extension of exploration and production under CBM contracts (2007);o Guidelines for pricing and commercial utilization of CBM (2011);
o Grant of right to exploration and exploitation of CBM to CIL and its subsidiaries fromcoal bearing areas(2015).
o Production CBM gases from coal bearing areas:~2600 billion cubic meters estimated CBM reserves in 12 States of India.
• Roadmap for Coal based hydrogen production – Expert Committee constituted (Sep, 2021)
10Initiatives across the value chain• Removal of extraneous, non-combustible material• Blending of coal with bio-mass, hydrogen/ammoniao Revised Policy for Biomass utilization for power generation
through co-firing in coal-based power plants (October 2021)
o Adani Power Ltd., IHI Corporation, and Kowa Company Ltd.
signed MoU to study feasibility on a modification to achieve
20% liquid ammonia co-firing ratio, and extend to 100%mono-firing at Adani Power Mundra coal fired power plant.
• Super-critical and Advanced Ultra Super-Critical technology• New Environmental norms for thermal power stations• CCU/S11Decarbonization initiatives by coal companies (1/3)
Promoting Renewable - Moving towards net zero carbon▪ Coal/lignite companies promoting renewables.
InstalledSolar

1656 MWWind-mills

51 MWPlan (2030)
5570 MW▪ Development of solar parks in some of the reclaimed mining areas also envisaged.
▪ Coal India Limited – the largest public sector fossil-fuel producer –o committed to become a Net Zero Energy Companyo installed 11 MW rooftop solar power as in May 2023
o in the process of implementing 3000 MW solar power program by 2025-26:
FY2024FY2025

FY202640014421158L

Decarbonization initiatives by coal companies (2/3)
Creation of Green Covero PSUs - sustained reclamation and afforestation of areas in and around its operating
mines.
o The reclamation activities being carried out in mines as per well-designed andapproved mine closure plans, which carry detailed Provisions with regard toProgressive as well as Final Mine Closure activities.
Lo Coal/lignite PSUs have envisaged to bring about 30,000 Ha of additional area (in andaround coalfields) under plantation by 2030 from 2019, enhancing the carbon sinksignificantly.

o Achievements of Coal/Lignite PSUs on the front of Bio-reclamation of mined-out areasand plantation in free areas in and around coal mines

Decarbonization initiatives by coal companies (3/3)
Eco-friendly Use of Abandoned Coal Mineso As of 2021, 293 mines have been closed/abandoned/discontinued due to various
reasonso The abandoned quarries of CIL are used for :❖ Dumping /Filling of fly ash in to the worked-out area for suitable reclamation.
❖ Development of eco and mine tourism parks❖ Afforestation❖ Pisciculture❖ Source to supply of drinking water and other domestic use.
❖ Generation of sand from overburden of opencast mines at few places

LCommitment of India to Climate Action
2015: COP-21
1

An economy-wide emissions intensity
target of 33%–35% below 2005 levels

2

A electric power capacity target of 40%
installed capacity from non-fossil-basedenergy resources by 2030, to be achieve withinternational support

3

A carbon sink expansion target of creating anadditional (cumulative) carbon sink of 2.5–3
GtCO2e through additional forest and tree
cover by 2030.

2022: NDCs (2030)

1

Non-fossil generation capacity: 50%

2Reduction in emissions Intensity: 45%from 2005 level

Citizen centric approach : key to combat climate change:
Mass movement for ‘LIFE’– ‘Lifestyle for Environment’2Clean Energy Transition: Progress and Outlook
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

34%

66%

Mar-12

29%

43%

71%

Mar-15

63%

68%

37%

32%

Mar-30Mar-32

57%

Mar-23
Fossil-fuelNon-Fossil-fuelInstalled Capacity
Source: CEA, TERI (2030) and NEP, 2023

Carbon Market❖ The Energy Conservation Amendment Act, 2022 includes provisions for putting in placea carbon market.

❖ Carbon credit will on priority be used within the country to meet India’s NDCs.
❖ The Central Government, or any agency authorized by it may issue carbon credit
certificate to the registered entity which complies with the requirements of the carbon

credit trading scheme.
❖ The registered entity shall be entitled to purchase or sell the carbon credit certificate inaccordance with carbon credit trading scheme.

❖ Carbon Credit and Trading Scheme (CCTS) notified in June 2023 :o National Steering Committee for Indian carbon market and other authorities shall develop thedetailed procedure for operationalizing the Indian carbon market.
o Power exchanges shall perform functions regarding trading of carbon credit certificates, inaccordance with the regulations notified by the Commission.
17

Carbon Capture, Utilization, and Storage (CCUS)‘CCUS Policy Framework and its Deployment Mechanism in India’ was released by NITI
Aayog Study Report (November 2022).

❖ Explores the importance of CCUS as an emission reduction strategy to achieve deep
decarbonization from hard-to-abate sectors.
❖ CCUS can provide a wide variety of opportunities to convert the captured CO2 todifferently value-added products like green urea, building materials (concrete andaggregates), chemicals (methanol and ethanol), polymers (including bio-plastics) andenhanced oil recovery (EOR) with wide market opportunities in India, thus contributing

substantially to a circular economy.

18

Clean Energy Transition: National Hydrogen Mission
The Mission• National Hydrogen Mission launched on 15th August 2021 aims to aid in meeting India’s climate
mitigation targets:o Envisaged to be the future fuels to replace fossil fuels and reduce dependence on fossil
fuels and also reduce crude oil imports❖ Cut about 50 million metric tonnes of carbon emissions❖ Save more than $12 billion on fossil fuel imports
Lo Green hydrogen production target of 5 million tonne per annum by 2030

Gas Authority of India Ltd. (GAIL) is setting up a green hydrogen unit that will produce 4.3 tonnes(close to 10 MW) of green hydrogen per day.
Leading companies in Green Hydrogen production
Reliance Industries Ltd., GAIL, NTPC, Indian Oil Corporation Ltd., L&T, Adani Green Energy, JSW
Steel, Jindal Stainless.
19

Thank you!
TERI - An independent not-for-profit think-tank acting invarious facets of sustainable development since 1974

“Creating Innovative Solutions for a
Sustainable Future”
Mr. A K Saxena
Senior Director
Electricity & Renewables Division
E-mail: ak.saxena@teri.res.in
www.teriin.org

Electricity & Fuels Division