India’s coal demand to top 1 billion tonne in 2022, push net-zero goals further away – Times of India
NEW DELHI: Coal will remain king in India, pushing net-zero goals further away in spite of the government’s continuous push for renewables, the International Energy Agency said on Thursday.
According to the IEA’s Coal Report 2021, India’s coal consumption will increase at an average annual rate of 3.9% to 1.18 billion tonne in 2024, on the back of a GDP growth rate of 7.4% between 2022 and 2024, which will partially be fuelled by coal.
It saw India’s total annual coal demand rebounding in 2021 to 1.05 billion tonne, a tad higher than pre-pandemic level, from 931 million tonne (mt) in 2020 when consumption had fallen due to the pandemic-induced demand destruction.
“As more households get connected to the grid and incomes continue to rise, higher sales of household electrical appliances (and electric vehicles in the near future) will lead to a steady increase in electricity demand. Power demand is also expected to grow in industries such as aluminium, as well as steel and cement production to meet the needs of construction and infrastructure projects,” the report said.
No wonder the report saw India, China and the US driving up the global coal consumption to a record level as early as next year, casting a shadow over net-zero pathways announced by countries at the recent COP26 climate summit at Glasgow, UK.
India has set a net-zero goal by 2070, which largely hinges on achieving 450 gigawatts of renewable capacity by 2030.
“The pledges to reach net-zero emissions made by many countries, including China and India, should have very strong implications for coal – but these are not yet visible in our near-term forecast, reflecting the major gap between ambitions and action,” according to Keisuke Sadamori, IEA’s director of energy markets and security.
Sadamori saw China and India, accounting for two-thirds of overall demand and dependent on coal and with a combined population of almost 3 billion people, holding the key to future coal demand.
At 705 mt in 2020, power generation had the largest share in India’s coal consumption, followed by 170 mt of thermal coal for non-power applications. The remainder was metallurgical coal used mainly in steel production.
Consumption fell 8% across all end-uses from 2019, a result of the pandemic lockdowns. Coal-fired power generation dropped 3.5% in 2020.
According to the report, coal-fired generation will make up 74% of the power mix in 2021, up from 72% in 2020, mainly driven by new electricity connections for 28.2 million households and reopening of the economy after a deadly second Covid-19 wave.
Power demand in India rose sharply in 2021. Utility power generation, which accounts for more than 85% of total power generation, was up 13% from January to August 2021, compared with the same months in 2020, and was 5% higher than in 2019.
According to the IEA’s Coal Report 2021, India’s coal consumption will increase at an average annual rate of 3.9% to 1.18 billion tonne in 2024, on the back of a GDP growth rate of 7.4% between 2022 and 2024, which will partially be fuelled by coal.
It saw India’s total annual coal demand rebounding in 2021 to 1.05 billion tonne, a tad higher than pre-pandemic level, from 931 million tonne (mt) in 2020 when consumption had fallen due to the pandemic-induced demand destruction.
“As more households get connected to the grid and incomes continue to rise, higher sales of household electrical appliances (and electric vehicles in the near future) will lead to a steady increase in electricity demand. Power demand is also expected to grow in industries such as aluminium, as well as steel and cement production to meet the needs of construction and infrastructure projects,” the report said.
No wonder the report saw India, China and the US driving up the global coal consumption to a record level as early as next year, casting a shadow over net-zero pathways announced by countries at the recent COP26 climate summit at Glasgow, UK.
India has set a net-zero goal by 2070, which largely hinges on achieving 450 gigawatts of renewable capacity by 2030.
“The pledges to reach net-zero emissions made by many countries, including China and India, should have very strong implications for coal – but these are not yet visible in our near-term forecast, reflecting the major gap between ambitions and action,” according to Keisuke Sadamori, IEA’s director of energy markets and security.
Sadamori saw China and India, accounting for two-thirds of overall demand and dependent on coal and with a combined population of almost 3 billion people, holding the key to future coal demand.
At 705 mt in 2020, power generation had the largest share in India’s coal consumption, followed by 170 mt of thermal coal for non-power applications. The remainder was metallurgical coal used mainly in steel production.
Consumption fell 8% across all end-uses from 2019, a result of the pandemic lockdowns. Coal-fired power generation dropped 3.5% in 2020.
According to the report, coal-fired generation will make up 74% of the power mix in 2021, up from 72% in 2020, mainly driven by new electricity connections for 28.2 million households and reopening of the economy after a deadly second Covid-19 wave.
Power demand in India rose sharply in 2021. Utility power generation, which accounts for more than 85% of total power generation, was up 13% from January to August 2021, compared with the same months in 2020, and was 5% higher than in 2019.
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