Coal is still the secret of our energy:

Coal is still the secret of our energy:

Context:

Demand for coal is expected to climb despite ramping up of renewable energy capacity

Introduction:

• Despite the rapid growth in renewable energy, legacy coal plants will continue to generate thermal energy. However, most additional capacity in the country will come from renewable sources.
• With India’s embarking on an ambitious journey to achieve renewable energy capacity of 175 gigawatt(GW) by 2022, questions have been raised on the relevance of coal in the present context.

Future of coal:

• Former chairman of Coal India Ltd., Partha Bhattacharya, said “If the future of the coal is dark, then the future of the country will be dark”.
• “Today in power generation, 81 percent is out of coal, “he pointed out.
• He also emphasized that “Going forward, the share will definitely come down. But the growth in renewable does not mean the generation from coal will come down. It will never come down, at least in next few decades.”
• According to analysts, renewable energy sources and coal will coexist, because the availability of coal is abundant in India and it can provide affordable power to propel India’s growth and light every household.

Auctions:

• The captive power plants purchased 80% of the coal offered on a five-year contract at an auction at an average premium of 25% over the notified price.
• At a similar auction held last year, Coal India had managed to receive a premium of 19% over the notified price.
• “In India we cannot do without coal. Despite the ramping up of renewable capacity, both solar and wind energy cannot go beyond 40% of the energy mix. So, coal has no problem for the next 20 years in India unless some new source of energy is invented overnight,” Sushil Kumar Jiwarajka, chairman, Renewable Energy Mini Grid Committee, FICCI, said.

Key points:

• The abundance of coal in India makes it the most important fuel.
• In power generation today, the share of coal in total capacity is about 62% but the share in generation is about 80%.
• With reliable supply of energy becoming critical to provide round-the-clock electricity across the country and to achieve 100% electrification by December 2018, super thermal power plants and other modern thermal plants are being nudged by the Centre to produce more energy from the same capacity.

Advantages of coal:

• For existing plants, coal based generation is the cheapest mode and most affordable source of power in the country.

Present status of coal in India:

• Presently, the plant load factor (PLF) for India’s thermal power capacity has dropped to 52% from 79% in 2007-8 but the country’s thermal plants are equipped to operate at about 85 to 90% PLF.
• To produce 500 billion units, 350 million tonnes of coal would be required.
• Even at a requirement of 300 million tonnes of coal, coal demand will increase by 7% a year from now.
• India uses about 800 million tonnes of coal.
• The current coal production in the country is 650 million tonnes, while the balance is imported.
• The additional demand for coal to fire up power plants would contribute a substantial Rs. 12,000 crore annually to the Clean Environment Fund at the rate of Rs. 400 per tonne.

Global comparison:

• India’s share in pollution is far less than its share of the global population.
• Developed countries did want to club India with China and said that what applied to China, applied to India too.
• Fortunately, India has not succumbed to that.
• Using more coal to meet the energy demand from the same thermal capacity for the next 20 years will not put India at disadvantage given its commitment to meet the Climate Change COP 21 obligations.
• As per the COP 21 obligations, India’s renewable capacity should be 40% of the total capacity by 2030. Including hydro-based power, that capacity is currently at 28%. Once India implements the 175 GW renewable programme, the 40% criteria will be achieved.
• Besides, India is well within the COP 21 obligation till it uses 1,500 million tonnes of coal a year as compared with 800 million tonnes now to generate energy.
• The Chinese share in global emissions is now close to 30%, whereas its share in global population is just about 17%.
• India’ share in global population is 16%, while its share in emissions is only 6%-7%.
• China is obliged to provide for green alternatives to counter pollution from the burning of 4 billion tonnes of coal.
• Even though the NITI Aayog energy policy mentions 330 GW of thermal capacity as target by 2040, it is unlikely to be achieved because of the sharp correction in solar power prices, said an analyst.
• The International Energy Agency (IEA) in a recent report titled India Energy Outlook has said, “The rapid change anticipated for the Indian energy system in the New Policies Scenario does not translate into a dramatic shift in the energy mix. Coal retains a central position in the mix, increasing its overall share in primary energy from 44% in 2013 to 49% in 2040.”
• Once the power sector begins to use increasing amounts of power from solar and other renewable sources, then coal can be put to use elsewhere: eg, coal can be deployed in the manufacture of ammonia and for conversion of ammonia to fertilizer.