Thursday, July 23, 2009

Going beyond coal

The focus of the Integrated Energy Policy by the Indian Planning Commission is to sustain a growth rate of 8%. This requires an increase in installed capacity of electricity from 1,60,000 MW to 800,000 MW by 2031-32, an annual growth in coal demand between 4.7% to 7.27%.

Towards meeting the demand, the Government of India has approved 213 new coal plants in the next eight years. And to pave way for more coal mining, the coal ministry and Ministry of Environment have joined hands by putting ‘degraded’ forest lands (between 55 to 60 per cent of the total forest land in the country) as “Go” areas for coal exploitation.

Did the environment minister mean ‘open’ forests when he said ‘degraded’? If so, it will further reduce the country’s overall forest cover, which is already short of the desired 33 per cent mark.

Is this the right way ahead? Energy demand has to be met but have we seriously considered the potential of energy efficiency and renewable energy to reduce the demand on fossil based energy?

How can renewable energy manage to cope when coal-based power is sold way below its actual cost? If you monetize costs of environmental damage from coal based generation, it works out to Rs 6.97 per kWh, according to World Institute Sustainable Energy.

Given climate imperatives, can we mindlessly afford to beat the same track?

India has very poor quality extractable coal reserves left for 30-40 years, according to CMPDI (central mine planning and design institute) whereas if depending largely on coal, power generation would have to ramp up about 6 times from the present 70,000 MW to nearly 400,000 MW.

Two thirds of India’s CO2 emissions come from coal used in power generation. India is the lowest per capita emitter, but given that 5% of the world’s CO2 emissions from fossil fuels come from India, serious thought has to be given to how we meet our energy demand. Is it through removing forests and burning more scarce coal?

Or is there a balance we have somehow missed so far?

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