ENERGY SECURITY IN INDIA:
DEMAND AND SUPPLY OF COAL& ITS PERSPECTIVE

ENERGY SECURITY
Definition
Availability

Energy Security is;❑ Unrestricted access to diverse and plentiful energy sources,❑ Free from dependence on a narrow range of options or specificgeographic areas,❑ With a supply resilient enough to endure external disruptions anda degree of energy self-sufficiency.

EnergySecurity

Energy Security in India❑ Union Budget 2024-25 supports this transition, allocating Rs.
19,100 crores to the Ministry of New and Renewable Energy.
❑ 2030: Meet 50% of its electricity needs from renewable sources
and install 500 gigawatts of renewable energy capacity.

Accessibility

Affordability❑ 2047: Become energy self-sufficient by eliminating reliance onenergy imports.
❑ 2070: Reach net-zero emissions.
Source: https://mospi.gov.in/2

INDIAN ENERGY MIX
Installed Capacity and Power Generation

Installed Capacity (as on June 30, 2024)
1% 6%

2%

47%
44%

Power Generation from July 1, 2023, to June 30, 2024
CoalRES
LigniteGas
Nuclear

3%10%

Thermal8%

Nuclear
Hydro

80%

RenewableSources❑ The total installed capacity of power generation is ~446 GW❑ The total power generation is 1717.47 BU.

❑ The installed capacity for coal-based power generation is ~211

❑ Power generation from Thermal sources was 1366.39 BU whichis around 80% of the total generation.

GW which is around 47.30% of the total capacity❑ The installed capacity of renewable is ~195 GW which is 43.70%
of total capacity
Source: Ministry of Power, CEA❑ The total power generation through Renewable sources was165.89 BU which is around 10% of the total generation.

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IMPORTANCE OF COAL IN INDIAN ENERGY MIX▪ Thermal power, primarily coal-fuelled, has consistently accounted for ~80% of India's total power generation.
▪ Despite growth in renewable energy, thermal power will still account for 47% of power generation by 2030 and 27%

by 2047, with Coal demand projected to reach 1443 MT by 2030 and 1861 MT by 2047.
The coal sector also remains integral to India's growth, contributing to economic prosperity, employment, and social
well-being.
▪ Coal is the largest contributor to railway freight, making up nearly 49% of total freight income, contributing Rs.

82,275 Crore in FY23.
▪ The sector contributes over Rs. 70,000 Crore annually to government revenues through royalties, GST, and otherlevies.

▪ The sector sustains livelihoods for thousands of families by providing significant employment, with over 2,40,000
employees in Coal India Ltd. and its subsidiaries alone, plus over 65,000 contractual workers.
Source: Press Release: PIB (February 2024)

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CURRENT SCENARIO OF COAL SUPPLY
Total Supply (MT)Domestic Supply vs Import (MT)1400

1233.86

1200
1000955.911027.84

1115.04

1200972.65

1000

877.36819.21906.33

800

800
600
600
400

400

237.67208.63200

20000
FY 19-20

FY 20-21

FY 21-22

FY 22-23

FY 2023-24

Supply (MT)FY 2022

FY 2023
Domestic

261

FY 2024

Import❑ The projected demand for FY 2023-24 was around1196 MT whereas the actual supply was 1233.86 MT❑ The contribution of imports to the total supply of coal
was only 21% in FY 2024

Source: Ministry of Coal

❑ The domestic supply of coal grew by around 11%
from FY 2023 to FY 2024 whereas imports grew byaround 10% only during the same period.
5FUTURE COAL REQUIREMENT
Overall Projected Coal Production Capacity (MT)Overall Projected Coal Demand (MT)
2000
1500
1000
500

956906980

695621700

285261

280

1,104

1,198
874

735

324

294

1,324

949
375

1,443

1,861

2500

1400

2000

2000
1549

1,029

1500
461

414

0
19-20

20-21

For Power

21-22

22-23

24-25

For Non-Power

27-28

29-30

46-47

Overall coal demand

1320

1000

1120
840

500

200080FY 24-25

1000

1300

1130

610
240

Total

319

80

10090

FY 25-26

FY 29-30

FY 46-47

CILCaptive/CommercialSCCL❑ India’s coal consumption crossed the 1 BT mark in 2022-23 &anticipated to reach 1.8 BT by 2047

❑ Coal production reached 997 MT production in 2023-24 withgrowth of 11.65% from last year

❑ Coal consumption will continue to rise in the short term with a
CAGR of 2-4%

❑ Coal production has shown an impressive CAGR of 5.36% fromFY19 (729 MT) to FY24 (997 MT)

Source: Ministry of Coal

❑ Ministry of Coal is targeting an increased coal production capacityof up to 2 BT by 2047
6POWER DEMAND IN INDIA TILL FY2030
Reduced share of coal-based capacity in total installed capacity

80%
70%60%
50%
40%30%20%10%0%

260
68%

212300250

20050%
44%

150

29%

1005002023-24
Share of Coal Based Capacity

2031-32
Share of Renewable Capacity❑ The installed capacity of coal-based power generation in actual terms is expected to increase to around 260 GW by 2031-32❑ The installed capacity of renewables in actual terms is expected to increase to around 596 GW by 2031-32 from around 195
GW in 2024
❑ This indicates that the share of renewables is expected to increase at a CAGR of 15% whereas the capacity of coal-based
power plants is expected to increase at a CAGR of 3%.
❑ Further, in terms of % share in energy mix, coal-based is expected to decrease from around 50% in 2024 to 29% in 2031-32.
Source: Ministry of Coal

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INDIA’S GLOBAL COMMITMENT IN ENERGY SECURITY
India's Nationally Determined Contributions (NDCs) for 2030 include:

1

Emissions Intensity: Reducing the emissions intensity of its GDP by 45% from 2005 levels

2Non-Fossil Fuel Energy: Increasing the cumulative electric power installed capacity from non-fossil fuelbased energy resources to 50%

3Net-Zero Emissions: Taking a step towards reaching net-zero emissions by 2070

4Transition to Cleaner Energy: Transitioning to cleaner energy from 2021–2030; with the Initiatives ofthe implementing Tax concessions and incentives such as Production Linked Incentive scheme forpromotion of manufacturing and adoption of renewable energy.

8INDIA’S ENERGY TRANSITION THROUGH CARBON CAPTURE
India has been consistently diversifying its resources through increased adoption of renewables/ clean fuels
through mandates such as ethanol blending and Compressed Bio-Gas (CBG) blending.
Carbon capture, utilization, and storage (CCUS) - Government is planning to launch a CCUS policy by theend of 2024. The country has seven CCUS pilots running with indigenous technology, including one frompower generator NTPC at its Vindhyachal plant in Madhya Pradesh.
National Green Hydrogen Mission 2023- The Mission will identify and develop regions capable of supporting
large scale production and/or utilization of Hydrogen as Green Hydrogen Hubs.
National Mission on Transformative Mobility & Battery Storage - The missions shall help India to improve
its air quality along with reducing India’s oil import dependence and enhance the uptake of renewableenergy and storage solutions. Through strategies for transformative mobility and Phased Manufacturing
Programmes for EVs, EV Components and Batteries
Production Linked Incentive (PLI) schemes aim to strengthen domestic manufacturing capacities in highefficiency solar cells and modules and advance chemistry cell manufacturing.
9ENERGY TRANSITION INITIATIVES BY MINISTRY OF COAL (1/3)

Coal Gasification
Cabinet approved Financial Assistance Scheme of Rs. 8,500 Crore to Coal/Lignite Gasification
Projects for PSUs/ Private Sector on 24.01.2024.
Ministry of Coal published RFP’s on 15.05.24.
Potential Bidders include CIL, BHEL, GAIL SAIL, NLCIL, BPCL, GMDC, JSPL, Thermax, Essar Poweretc.

CCUS Initiatives
CO2 Initiatives: NTPC has setup first 20 tpd CO2 Capture Plant at Vindhyachal. The Captured
CO₂ is regenerated for reuse.
CO2 utilization initiatives: 10 tpd CO2 to Green Methanol Plant at NTPC Vindhyachal, 10 tpd
CO2 to Generation 4 Ethanol Plant at NTPC’s Fossil Fired Power Plant, and Development of CO2
Based Carbonated Aggregates by NTPC

10ENERGY TRANSITION INITIATIVES BY MINISTRY OF COAL (2/3)

Renewables – Solar and Wind PowerThe coal sector aims to achieve a total renewable energy capacity of approximately 9000 MW
by 2030
Combined solar capacity installed by CIL, NLCIL, and SCCL is about 1700MW, with an additional
51 MW from windmills

Renewables - Green hydrogen & ammonia
The Ministry of Coal has joined hands with Ministry of New and Renewable Energy to take up
projects on Green Ammonia/Hydrogen

CIL has identified surplus land parcels for feasibility study11

ENERGY TRANSITION INITIATIVES BY MINISTRY OF COAL (3/3)

Renewables – Pumped Storage Power
Initiating Pump Storage Projects (PSP) in de-coaled coal mines to diversify energy sources
Aims to utilize solar energy for hydroelectricity
CIL has identified 24 abandoned mines and other sites for the same

Pithead TPPs
Setting up power plants at pithead is more cost-effective with efficient Super Critical technology
and reduced burden for coal logistics
Coal India Ltd (CIL) to establish two pit-head thermal power plants with planned capacity of1X660 MW and 2X800MW
NLCIL has formulated plans to construct a 3X800 MW pit-head thermal power plant at Talabira inOdisha
12COAL MINISTRY'S SUSTAINABLE SHIFTThe Ministry of Coal in India has launched initiatives for environmentallyresponsible mining, emphasizing mine closure, refilling, and afforestation❑ Structured guidelines for mine closures, monitored by CMPDI's
centralized portal, drive a shift towards environmentally consciousmanagement.
Green cover on reclaimed OB dump of JVR OC-II of SCCL

❑ Coal and lignite PSUs showcase environmental responsibility throughland reclamation, overburden management, and extensive
afforestation to reduce mining's impact.

❑ Progressive and final mine closures, featuring three-tier biologicalreclamation, seed ball plantation, and drone seeding, are rigorously
implemented and monitored via remote sensing technology.
Plantation on Over Burden (OB) of Jamuna OC
Source: Ministry of Coal

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INDIA’S OTHER KEY INITIATIVES (1/5)
1. AUSC TECHNOLOGYINDIA'S NEED FOR
BASELOAD POWER
India strengthens coalbased baseload tobalance renewableenergy variability.

Source: Ministry of Heavy IndustriesANNOUNCEMENT
OF 800 MW AUSC
PLANT
Indian Government
announced plans to set
up the country's first 800
MW advanced ultrasupercritical Plant

AUSC TECHNOLOGY
DEMONSTRATIONAUSC plant: NTPC-BHEL
joint venture withgovernment fiscalbacking.

BENEFITS OF AUSCTECHNOLOGYAUSC tech: 700°C+ steam,high pressure forefficiency, less fuel, feweremissions.

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INDIA’S OTHER KEY INITIATIVES (2/5)
2. SMALL MODULAR REACTOR (SMR)
Smaller, modular nuclear plants with enhanced safety vs. traditional reactors.
Role in Energy Transition

Advantages of SMRsCarbon-free, reliable complement torenewables for stable, sustainableenergy mix.

Portable, lower-cost, suitable for remote areas anddiverse energy needs.

Enhanced Safety Features

Potential Applications

SMRs incorporate passive safety andinherent
features,minimizing
meltdown risks and enhancing nuclear
power safety.

SMRs offer versatility: power generation, heating,desalination, and industrial use, boosting energy
security.

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INDIA’S OTHER KEY INITIATIVES (3/5)
3.

LIFESTYLE FOR ENVIRONMENT (LIFE)The Government of India launched the Green Credit Program (GCP) andEcomark Scheme under the 'LiFE' movement to promote sustainable living
and eco-friendly choices..
1. Green Credit Program - Launched in 2023 as part of the 100-day package,
the Green Credit Program (GCP) promotes eco-friendly actions bybusinesses, such as tree plantations, water management, and wastemanagement. It focuses on restoring degraded forest lands identified bystate forest departments. Central and state PSUs can fund these activities
through CSR or environmental commitments, earning green credits uponcompletion. CIL has identified 100 sites for this initiative.
2. Ecomark Scheme is labelling of products which will have lesser adverse
impacts on the environment, with the objective to encourage theconsumers to adopt such products as well as the manufacturers fortransitioning to production of Ecomark certified products for promoting
sustainability.
Source: MoEFCC

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INDIA’S OTHER KEY INITIATIVES (4/5)
4.

INDIAN CARBON MARKET
India ratified the Paris Agreement in 2016, committing to limit the global average temperature rise to below 2°C by the end of the century

As part of its first Nationally Determined Contributions (NDCs), India pledged to reduce the greenhouse gas (GHG) emission intensity of its
economy by 45% by 2030 from 2005 levels.

The country to meet its ambitious climate goals, a robust National Framework for Indian Carbon Market (ICM) through a reliable national
carbon credit electronic platform is being developed.

The framework aims to compliment and support various entities by pricing their additional actions towards Green House Gas (GHG) emission
reduction, who are undertaking projects to decarbonize the Indian economy.

The Indian Carbon Market Framework has two key mechanism – Compliance mechanism which aims to address the emissions from its
energy use and industrial sectors and offset mechanism to incentivize the voluntary actions from entities for GHG reduction, thus
providing a comprehensive approach to decarbonization of the economy.
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INDIA’S OTHER KEY INITIATIVES (5/5)
5.

ENERGY EFFICIENCYMinistry of Power, through Bureau of Energy Efficiency (BEE), has initiated a number of energy efficiency initiatives.
Standards and Labelling▪Provide consumers withinformed choices about theenergy and cost-saving
potential▪BEEenergyefficiency
labeling programs aim toreduce appliance energy
consumption

Energy Conservation
Building Codes (ECBC)▪ECBC sets minimum energy
standards for newcommercial buildings with aconnected load of 100 kW
or a contract demand of
120 kVA and above▪Star Rating Programme forbuildings is based on actualenergy usage per area,
expressed in kWh/sq.m

Demand Side Management(DSM) Scheme▪Agriculture DSM: aims toenhance energy efficiency
in the sector by establishinga market-based framework.

▪Municipal DSM: The basic
objective of the project wasto improve the overall
energy efficiency of theULBs▪Capacity
BuildingofDISCOMs: This program
helps DISCOMs reduce peakelectricity demand, allowing
them to delay expandingcapacity.

Strengthening
Institutional Capacity ofStates▪Strengthening of State
DesignatedAgencies(SDAs): Currently, SDAs
have been established in 32statesby
designating
existing organizations as
required under section
15(d) of the Energy
Conservation Act 2001.
▪Contribution to the State
Energy Conservation Fund(SECF) Scheme: The SECF
helps overcome major
barriers to implementing
energy efficiency projects
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CONCLUSION
India's commitment to net zero emissions by 2070 and 50% renewable electricity by 2030 marks a significant
milestone in global climate action.

Despite rapid economic growth and rising CO2 emissions, India's per capita emissions remain low, especiallyconsidering historical emissions.
India is already making substantial progress in its clean energy transition, exceeding its Paris Summit
commitments and rapidly expanding renewable energy capacity.
The country faces near-term challenges, including energy affordability, security risks, and air pollution, but has
policies in place to address these issues.

India's climate ambitions are transformational not only for the country but for the entire planet, given its sizeand potential for growth in a low-carbon manner.

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THANK YOU!

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