Why does coal remain the dominant source of energy in India despite progress in clean energy?

Coal continues to be the dominant source of energy in India, even as the country makes significant progress in clean energy sectors like solar and wind. This situation is shaped by a combination of economic, infrastructural, and policy factors that sustain coal’s central role in India’s energy mix.

• Abundant Domestic Reserves: India has large coal reserves, making it a readily available and relatively cheap source of energy compared to imported fuels.
• Established Infrastructure: The power generation and industrial sectors are heavily invested in coal-based plants, with existing rail and logistics networks tailored for coal transport.
• Reliability and Base Load Supply: Coal-fired power plants provide stable, round-the-clock electricity (base load), which is essential for meeting the continuous demand that renewables currently struggle to fulfill due to their intermittency.
• Economic Considerations: Coal is a major source of employment and government revenue (through taxes and royalties), making a rapid transition politically and economically sensitive.
• Slow Pace of Renewable Integration: Despite growth, renewables face challenges like land acquisition, grid integration, storage limitations, and variability in power generation (especially solar and wind).
• High Initial Costs: While renewable energy costs are falling, the initial investment for new infrastructure, storage solutions, and grid upgrades remains high.
• Policy and Regulatory Hurdles: Policy uncertainty, delays in regulatory approvals, and financial stress in the power distribution sector slow down the adoption of renewables.