June 19, 2020 Read More →

Modi claims private coal mining to boost India’s energy security

Climate Home News:

Prime Minister Modi says private coal mining will boost India’s energy security, despite expert warnings of stranded assets and indigenous rights violations

The Indian government is opening coal mining to private investment in the hope of creating hundreds of thousands of jobs, following an economic slump triggered by the coronavirus pandemic. 

While India remains the world’s second largest coal consumer,the falling cost of renewable energy has made it consistently cheaper to generate electricity with wind and solar energy than new coal. An analysis by Ieefa found that renewables delivered more than two-thirds of India’s new generating capacity additions in the 2019-20 fiscal year.

“Growth in coal demand is diminishing,” Sunil Dahiya, analyst at the Centre for Research on Energy and Clean Air told Climate Home News. “So, even if this coal is mined where is demand?”

Dahiya warned that an aggressive push for coal mining risks creating stranded assets which cannot be sold to power generation companies. “That would be another economic disaster,” he said.

[Chloé Farand]

More: India eyes private investment to open 41 new coal mines

Posted in: IEEFA In the News

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