{"id":196124,"date":"2022-07-18T19:08:37","date_gmt":"2022-07-18T13:38:37","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=196124"},"modified":"2022-07-18T19:10:24","modified_gmt":"2022-07-18T13:40:24","slug":"we-need-an-orderly-transition-from-coal-to-renewables","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/we-need-an-orderly-transition-from-coal-to-renewables\/","title":{"rendered":"We need an orderly transition from coal to renewables"},"content":{"rendered":"\n

Source<\/strong>: The post is based on an article \u201cWe need an orderly transition from coal to renewables\u201d published in the Indian Express on 18th<\/sup> July 2022.<\/p>\n

Syllabus<\/strong>: GS 3 Infrastructure: Energy, ports, roads etc.<\/p>\n

Relevance<\/strong>: Energy Security and Energy Transition<\/p>\n

News<\/strong>: Since the onset of the pandemic and over the past few months, after the Ukraine-Russia war, commodity prices, especially that of energy, have surged worldwide, which has raised concerns over energy security.<\/p>\n

Steps taken to measure inflation in the coal sector in India<\/strong><\/h5>\n

Introduction of the national coal index<\/strong> (NCI) as the\u00a0wholesale price index (WPI) for coal has no component of imported coal.<\/p>\n

The NCT reflects international coal prices. It provides a benchmark for revenue-sharing contracts<\/strong> being executed after the auctions for commercial mining of coal<\/strong>.<\/p>\n

Status of inflation in the coal sector<\/strong><\/h5>\n

For the last six months, the WPI for Coal has been stable at around 131. Over the same period, the NCI<\/strong> has jumped from about 165 to about 238 reflecting the sharp increase in international coal prices.<\/p>\n

Measures to address inflation in the coal sector in India.<\/strong><\/p>\n

The domestic coal industry<\/strong> has responded with an increase of over 30% in coal production from April to June to reduce the exposure of the domestic economy to the price volatility of international markets.<\/p>\n

The government has permitted commercial mining<\/strong> and allowed the private sector to produce more coal.<\/p>\n

What are the measures needed to make the above-mentioned steps more effective?<\/strong><\/p>\n

First,<\/strong><\/em> The Ministry of Power needs to finalize its draft National Electricity Policy<\/strong> 2021 as the policy is poised to articulate the importance of domestic coal-based generation<\/strong> in the country.<\/p>\n

Second,<\/strong> <\/em>the financial community<\/strong> has to be sensitised to the need of increasing domestic coal production to meet the growing energy demand. The industry and financial community should adopt a more holistic approach toward environmental, social, and governance (ESG) criteria.<\/strong><\/p>\n

Third,<\/strong> <\/em>the regulator<\/strong> should address the issues arising from a greater role of the private sector<\/strong> in coal production. There should be a single point of contact for the industry in the form of a dedicated regulator. It would help the new private commercial miners to overcome problems that could arise in due course.<\/p>\n

Fourth,<\/strong> <\/em>in addition to increasing domestic production of coal<\/strong>, there is a requirement to ensure diversification<\/strong> of the production base<\/strong> and improvement in the quality<\/strong> of the coal<\/strong> produced in India.<\/p>\n

Fifth,<\/strong> <\/em>there is a need for reforms in various cross subsidies<\/strong> which cause undue financial burde<\/strong>n on the coal sector.<\/p>\n

Way Forward<\/strong><\/h5>\n

Although coal is a major cause in GHG emissions. But it is unavoidable<\/strong> for India\u2019s energy security in the near future. Therefore, there is a need to adopt processes<\/strong> for orderly transition<\/strong> from coal to 500 GW of renewables<\/strong>.<\/p>\n

However, high prices of coal<\/strong> and coal-based generation<\/strong> may encourage import of coal and it will expose us to international energy prices fluctuation. Therefore, there should be increased focus on domestic production of coal.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on an article \u201cWe need an orderly transition from coal to renewables\u201d published in the Indian Express on 18th July 2022. Syllabus: GS 3 Infrastructure: Energy, ports, roads etc. Relevance: Energy Security and Energy Transition News: Since the onset of the pandemic and over the past few months, after the… Continue reading We need an orderly transition from coal to renewables<\/span><\/a><\/p>\n","protected":false},"author":10328,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10500],"class_list":["post-196124","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-express","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1700317174},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/196124","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10328"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=196124"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/196124\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=196124"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=196124"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=196124"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}