India introduced new coal proposals worth 11.4 GW in 2023 – in both the public and private sectors – more than in any year since 2016. The year also saw an increase in permissions to new coal projects, as well as the revival of several projects that were stalled for a long time, shows an annual survey by San Francisco-based Global Energy Monitor.
At least 75 per cent (8.6 GW) of the new capacity is backed by government-owned enterprises, both at the central and state levels. Also, private entities such as Essar and Adani Power proposed the 1.2 GW Kajurda power station and 1.6 GW Raikheda expansion. At least 2.2 GW of shelved capacity, all of which was privately owned, was also reactivated into the permitting process in 2023.
In fact, a global rise was noted in 2023 as the coal fleet grew by 48.4 GW (2%) to a total of 2,130 GW with China driving two-third of the additions. This upswing comes at a time when countries have agreed to “transition away from all fossil fuels” at the COP28 held in December last year, and accelerate efforts to phase down unabated coal power alongside a call to triple renewables capacity by 2030.
Low coal plant retirements in US, Europe
India has consistently highlighted principles of equity and climate justice, and stressed that the developed countries must take the lead in global climate action.
Data shows that lower retirements in the US and Europe contributed to the coal capacity upswing. While European Union member states and the UK represented roughly a quarter of retirements last year, the US only retired 9.7 GW of coal capacity – a slowdown compared to 14.7 GW retired in 2022.
The US still maintains 200.1 GW of operating capacity representing the third largest coal fleet in the world behind China and India. But it needs to increase the pace of retirements to meet climate commitments, experts said.
The influential G7 economies, including US, Japan and UK, account for 15 per cent (310 GW) of the world’s operating coal capacity with the two proposals still in the pipeline in the US. In fact, the data in the Global Coal Plant Tracker shows that 69.5 GW of coal power capacity came online across the world while just 21.1 GW was retired in 2023, resulting in the highest net increase in operating coal capacity since 2016.
“India cannot afford to immediately move away from coal without being mindful of the current energy needs of its billion-plus population. So it is stepping up clean energy, but the scale of the energy demand is so huge, and it will take more time before it can be relied upon as an affordable option. But, the onus lies on the developed countries that have historically contributed to most of the emissions, to really step up their action at a pace that is required,” said Srestha Banerjee, director, Just Transition at Delhi-based organisation iForest.
Most operating coal capacity in Chhattisgarh
Data also shows that Chhattisgarh has the most operating coal capacity of 26.7 GW as of now, but Uttar Pradesh could soon take the lead if all proposed and under-construction capacities are built in both states.
A recent report commissioned by the principal scientific adviser (PSA) to the government said coal is projected to continue as the backbone of India’s energy system for the next two decades.
Stalled projects revived
Eight states started, reactivated, or permitted newly proposed coal projects in 2023, while several other stalled or stranded projects were also flagged by the Central Electricity Authority in 2023 as “likely to be revived” between 2023 and 2031.
According to the report, an orderly move towards clean energy will help confront the climate crisis, raise economic productivity, but simultaneously investing in both coal and renewables will only result in a “messier energy transition for India”.
“If India achieves its renewable energy targets by 2030, and simultaneously activates its advanced-stage construction capacity, it will possess ample power generation capability to satisfy escalating demand. Any further investment in coal capacity could potentially initiate a subsequent wave of stranded asset formation within the power sector, and divert resources and funding from the trajectory of renewable energy expansion, effectively entrenching India’s dependency on coal,” said Sunil Dahiya, South Asia Analyst at the Centre for Research on Energy and Clean Air (CREA).
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