Published By : 22 Jun 2017 | Published By : QYRESEARCH
World’s largest coal mining company, Coal India, has announced that it will cease operations across 37 of its mines as they no longer produce economical returns. The company, which accounts for nearly 82% of India’s coal, has stated that the mines will be decommissioned by March 2018. The rising adoption of solar power in the country owing to plummeting costs and rising awareness is considered to be the key factor behind the reduced demand for coal.
The solar sector in the country has also received heavy influx of funds from several international entities and has set onto a healthy growth path. The scenario is putting immense pressure on fossil fuel companies, which presently form a lion’s share in the overall resources used in the country’s energy sector.
Ambitious Renewable Energy Plans and Regulations on Coal-fired Plants
The Indian government has announced that no coal plants will be built in the country after 2022 and that renewables will account for nearly 57% of the country’s power consumption capacity by 2027. On its way to fulfilling this commitment, the country has scrapped proposals for nearly 14 GW of coal-fired power stations in May this year. The decision represents a major shift in the country’s predominantly fossil fuel-powered energy sector.
The solar tariffs in the country have also witnessed a free fall in the past few months, which, combined with the vast measures taken by the government towards the improvement of energy efficiency and highly ambitious renewable energy commitment, have rendered a rising number of fossil fuel projects unprofitable. Moreover, a report published by one of country’s research groups, The Energy and Resources Institute (TERI), has stated that if the costs of solar and other renewable energy technologies continue to drop at the pace they are plummeting presently, the country could well phase coal out of its energy mix completely by 2020.