In Short : India can eliminate thermal coal imports by 2029 and save $66 billion if it adds 50 GW of renewable energy annually, according to a Climate Risk Horizons report. With coal imports reaching $21 billion in 2023-24, the shift to renewables would enhance energy security, reduce financial risk, and align with India’s target of 500 GW non-fossil capacity by 2030.
In Detail : India has the potential to completely eliminate thermal coal imports by 2029 if it adds 50 gigawatts of renewable energy every year, according to a new report by Climate Risk Horizons. This transition could help the country save nearly $66 billion in foreign exchange between 2025 and 2029.
The report highlights the growing cost and dependence on thermal coal imports. In 2023-24, India imported approximately 206 million tonnes of thermal coal at a total cost of $21 billion. Over the past decade, thermal coal imports have increased by 58%, while the value of these imports surged by 124%, driven by volatile global prices and currency depreciation.
This heavy reliance on coal imports brings both physical and financial vulnerabilities. Physical risks include disruptions in coal supply due to political instability or climate events in exporting countries. Financially, fluctuating global energy prices create economic uncertainty for Indian power companies and raise costs for consumers.
In response to these challenges, the Indian government has revised its renewable energy goals, targeting 500 GW of non-fossil fuel capacity by 2030. To achieve this, India plans to add 50 GW of renewable energy each year until 2027-28. Currently, the country has about 151 GW of installed solar and wind capacity, and nearly 200 GW when hydro, small hydro, and biogas are included.
Accelerating renewable energy deployment would not only reduce dependence on imported coal but also bolster India’s energy security. It would enable more stable electricity pricing and reduce the environmental impact of power generation. The report emphasizes that such a strategy is essential for meeting India’s growing energy needs sustainably.
In conclusion, a consistent push to expand renewable energy infrastructure could transform India’s energy landscape. With significant economic and environmental benefits, the shift away from thermal coal imports is both a strategic and necessary step toward long-term energy independence and climate resilience.
