Use coal while economical, says CEA: 

Use coal while economical, says CEA: 

Context:

Chief Economic Advisor Arvind Subharmanian said on Thursday, India should leverage its coal assets while it is still economical to do so before ramping up its renewable energy capacity.

Introduction:

•   The country should still have coal as a major fuel and avoid getting distracted by the global debate on “carbon imperialism” said chief economic advisor Arvind Subramanian.
• The low tariffs seen in the renewable sector do not include several implicit costs that are, so far, being subsidized.
• Subramanian suggested ramping up coal production dramatically in the short run and slowing down renewable energy capacity addition.
•  Subramanian emphasized that coal can be slowed down and renewable energy ramped up, when social cost for the latter would change in its favour.

Key points:

•   The burden of combating climate change should be consistent historically and equitably
•  Recently second volume Economic Survey noted last week that the transition to increasing role of renewable it the energy mix is likely to adversely affect conventional energy generation assets.
•    Coal would remain at the centre stage in India with its share in the energy mix not declining below 46% in 2047, as per the report titled ‘Energizing India’, jointly prepared by the Niti Aayog and the Institute of Energy Economics, Japan.
•  Country intends to generate at least 40% of its electricity from non-fossil sources by 2030.
•   It aims to add 175 GW of renewable energy-based installed capacity by 2022.
•  Total installed capacity in the country presently stands at about 350 GW.
•  In FY 17, coal power plant generated more than 85% of the total electricity produced in the country.