Shortage Of Coal

Mark Twain observed, “I'm in favour of progress; it's change I don't like.” Coal dominates Indian energy because it’s available domestically and cheap (especially without a carbon tax). If the global focus is on the energy transition, how does India ensure a just transition? Managing winners and losers will be the single largest challenge for India’s energy policy. Coal is entrenched in a complex ecosystem. In some states, it’s amongst the largest contributors to state budgets. The Indian Railways, India’s largest civilian employer, is afloat because it overcharges coal to offset under-recovery from passengers. Coal India Limited, the public sector miner that produces 85% of domestic coal, is the world’s largest coal miner. But despite enormous reserves, India imports about a quarter of consumption. On the flip side, coal faces inevitable pressure from renewable energy, which is the cheapest option for new builds. However, there is significant coal-based power capacity already in place, some of which is underutilized, or even stranded. Low per-capita energy consumption means India must still grow its energy supply. Before India can phase out coal, it must first achieve a plateau of coal. How this happens cost-effectively and with least resistance isn’t just a technical or economic question, it depends on the political economy of coal and its alternatives. Some stakeholders want to kill coal. A wiser option may be to first clean it up, instead of wishing it away. Across 18 chapters, drawing from leading experts in the field, we examine all aspects of coal’s future in India. We find no easy answers, but attempt to combine the big picture with details, bringing them together to offer a range of policy options.

Coal fuels about 50 percent of US electricity production and provides a quarter of the country's total energy. China and India's ferocious economic growth is based almost entirely on coal-generated electricity. Coal currently looks like a solution to many of our fast-growing energy problems. However, while coal advocates are urging full steam ahead, increasing reliance on the dirtiest of all fossil fuels has crucial implications for the global climate, energy policy, the world economy, and geopolitics. Drawbacks to a coal-based energy strategy include: Scarcity – new studies suggest that the peak of world coal production may actually be less than two decades away. Cost – the quality of produced coal is declining, while the expense of transport is rising, leading to spiraling costs and increasing shortages. Climate impacts - our ability to deal with the historic challenge of climate change will hinge on reducing our coal consumption in future years. Blackout goes to the heart of the tough energy questions that will dominate every sphere of public policy throughout the first half of this century, and is a must-read for planners, educators, and anyone concerned about energy consumption, peak oil and climate change.