Arguing that there was no economic rationale to shut down coal-based power plants, the Economic Survey on Friday said it was imperative for India to first try and become a developed country by 2047, and then pursue the ambition of achieving net-zero status by 2070. This carries forward the point made in last year’s Economic Survey, that had asserted that it was “morally wrong” to tell developing countries to abandon their aspirations for better living in order to achieve climate targets, when the developed world was not doing even the bare minimum expected from it. The Survey said that in view of the continuing challenges being faced in largescale deployment of renewable and alternative sources of energy, there was no reason for India to abandon coal-fired power plants under international pressure, also because most of these plants had substantial life-spans still remaining. “There is no valid economic rationale for shutting down coal plants in India, leaving huge investments under-utilised and stranded and without a dependable alternative in place,” it said. “The US and European countries may transition from coal to natural gas because they have access to that resource, and their older conventional coal-based thermal plants are nearing the end of their life cycle. In India's case, most capacity additions to the coal-fired power plants were made only in the 2010s. Unlike many developed countries, India's only reliable energy source is coal, as it possesses around 10 per cent of the world's coal reserves but only 0.7 per cent of the world’s natural gas reserves,” the Survey said. Being the third largest emitter of greenhouse gases after China and the United States, India has often come under pressure to reduce its dependence on coal-based electricity. While India has repeatedly said it would bring down the share of coal in its overall electricity generation mix, but added that in absolute terms, coal would continue to be the main source of power generation. “Presently, given the resource endowments, coal cannot be neglected as a reliable and affordable source of energy for India’s development,” the Survey said. It said while there had been remarkable progress in the deployment of nuclear and renewable energy sources like solar or wind, these still had significant challenges. “Several challenges hinder renewable energy's cost-effective and efficient integration into the energy mix. These include significant investments required for grid integration, the development of battery infrastructure to manage intermittency, scaling up production of the components of renewable energy systems, access to critical minerals that are needed for storage technology, the limited availability of land in densely populated areas and the competing and rapidly increasing energy demands from agriculture, infrastructure, and industry,” it said. It argued that India’s energy transition plans must be mindful of geopolitical vulnerabilities and avoid deepening its dependence on external sources for critical imports. “Lessons learnt from the experiences of developed economies caution against shutting down thermal energy without adequate technological alternatives that allow a stable energy supply,” it said. “India is uniquely positioned in terms of its growing energy requirements. India must decisively leverage its best resources, advanced technologies, and expertise to accelerate its journey toward becoming a developed nation by 2047 while ensuring a low-carbon pathway. Following this critical milestone, the nation must pursue its ambitious goal of achieving net zero emissions by 2070,” it said.
