India Can’t End Coal Yet, But Must Clean Up Its Power Sector: CSE Report

India’s electricity demand is rising fast, and coal is still the main source of power. But coal-based thermal power plants are also the largest source of greenhouse gas (GHG) emissions in the country. A new report by the Centre for Science and Environment (CSE) says the country should not focus on ending coal use, but on making coal power cleaner.

Coal Still Fuels Country

“Electricity generation is responsible for 39 percent of greenhouse gas emissions in India, and coal-based thermal power plants play a major role in this,” said Sunita Narain, director general of CSE.

“It is not possible to completely stop coal in a country like India, but it can be decarbonised, that is, made carbon emission-free.”

CSE released the report, titled Decarbonising the Coal-based Thermal Power Sector in India, during a Round Table discussion attended by senior officials, industry leaders, and researchers. The report says it is not practical to move away from coal completely. Instead, India should reduce emissions from coal in a planned and targeted way.

Narain pointed out that India has achieved 46.3 per cent of its installed electricity capacity from non-fossil sources like solar and wind. But power from these sources still forms only about 12 per cent of actual electricity generation, because it is not consistent or reliable. “It is for this reason that strong and strategic measures for emission reduction from coal-based power plants would be critical to reducing overall emissions from the sector,” she said.

Cutting Emissions Without Cutting Coal

The CSE report warns that if current trends continue, emissions from the coal-based thermal power sector could increase from 1,076.7 million tonnes in 2022-23 to 1,332.7 million tonnes by 2031-32. If coal continues to provide around 73 to 75 per cent of electricity, emissions could go as high as 1,838 million tonnes by 2031-32.

The Round Table included officials from the Central Electricity Authority (CEA), Central Electricity Regulatory Commission (CERC), GRID India, NTPC, Tata Power, Adani Power, civil society groups, and researchers. They discussed the challenges and possible solutions for reducing emissions from coal power plants.

Ashok Lavasa, former environment and finance secretary, said the focus has changed.

 “The conversation has shifted from eliminating coal to focusing on just transition. Over the past 30–40 years, the climate discourse has shown the limits of a one-dimensional energy view and highlighted the need for energy security.”

Ramesh Veeravalli, a technical member of CERC, said research is needed for better technology.

“Research on full and cost-effective carbon capture, utilisation and storage is a critical lever for decarbonising the sector.”

Rajiv Porwal, director of system operations at GRID India, stressed flexibility and cost.

“We need grid flexibility to decarbonise the coal sector. Until affordable large-scale storage is available, thermal plants must stay flexible. For now, the focus should be on least-cost solutions.”

The CSE report looked at the performance of power plants based on their technology and carbon emissions. The findings were surprising. Eight coal plants that are over 25 years old are among the top-performing units. In contrast, 49 plants that are less than 20 years old are among the worst-performing. The study also found that 95 sub-critical units under 25 years of age are working at lower efficiency than the national average.

The report also found that super- and ultra-supercritical plants, which are more efficient, are underused. In 2022-23, 14 out of 72 supercritical units and 8 out of 20 ultra-supercritical units operated at less than 50 per cent capacity. Sub-critical plants, which are less efficient, had the highest average plant load factor at 68 per cent. Supercritical plants had 62 per cent, and ultra-supercritical only 54 per cent. This shows that newer, more efficient technologies are not being used to their full potential.

What Can Be Done?

CSE suggests three main steps to reduce emissions by 2031-32. First, improve the efficiency of the existing power plants. Second, increase power generation from super- and ultra-supercritical units. Third, co-fire coal with biomass—mixing up to 20 per cent biomass in the fuel.

Parth Kumar, programme manager for industrial pollution at CSE, said,

“All of this together could bring down the emissions to 900 million tonnes by 2031-32, which is a 32.4 per cent reduction from the business-as-usual scenario.”

He added,

“The quantum of this reduction would be higher than the combined emissions of the iron and steel and cement sector in India.”

CSE also recommends changes in how the power sector works. These include linking emission performance to how power is dispatched, revising power purchase agreements, using the coal tax (cess) for cleaner technology, and improving electricity demand forecasting.

Nivit K Yadav, programme director for industrial pollution at CSE, said even young power plants that perform poorly should be included under renovation and modernisation schemes.

“Many units, even after using domestic coal with sub-critical technology, rank among the best-performing ones in the country. This points to the possibility of achieving low emissions even with plants that are older and use domestic coal,” he said.

The report makes it clear that coal will remain part of India’s energy system for the near future. But some steps can be taken now to make it cleaner and reduce its impact on the environment. The message is simple: Don’t end coal, fix it.

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