Coal India, a major player in the energy sector, is making significant strides in transitioning from its traditional focus on coal to cleaner energy solutions. The state-owned company plans to invest approximately Rs250 billion (around $3 billion) to develop clean energy projects with a capacity of 4.5 gigawatts (GW). This energy transition move is in line with India’s greater goal to reach net-zero carbon emissions by 2070.
Indeed, at present, Coal India continues to be a major pillar in fulfilling India’s energy needs. The nation’s coal-fired capacity is 222 GW. The country is committed to increasing its renewable energy capacity to at least 500 GW by 2030. This goal is an ambitious increase over its current clean energy capacity of 172 GW. As a crucial pillar of this ambitious plan, Coal India is laying the groundwork for a more sustainable energy future.
Despite this momentum, India’s renewable energy sector poses many obstacles that threaten to derail advancement. The lackluster appetite for tenders has put the future of new projects in doubt. Further compounding this issue are challenges with land acquisition, which can prolong the start of new clean energy projects. Furthermore, delays in power purchase agreements and occasional project cancellations continue to pose significant obstacles in realizing India’s clean energy goals.
Coal India is becoming more serious about clean energy projects. It is partnering with AM Green to produce five million tonnes of green ammonia annually by 2030. This partnership is a glimpse into the tremendous opportunities ahead for innovation in this space. More importantly, it shows Coal India’s sensitivity to the changing energy landscape.
While the government plans to increase coal-fired capacity by an additional 80 GW by 2031-32, this raises questions about the balance between traditional fossil fuels and renewable energy sources. Stakeholders are watching intently to see how Coal India continues making this transition and how they tackle the challenges that come with the complexities of the renewable sector.