Eye on Asia | Why India’s private sector is key to Modi’s green energy pledge
- India needs to support its energy champions to hasten its shift from fossil fuel dependence to a green economy
- Reliance Industries, Adani Enterprises and the Tata Group are showing the way by expanding their renewable energy interests
India recorded a power supply shortage of 1.2 billion units in October – the highest in more than five years – amid a crunch in coal stocks for thermal plants. The western state of Gujarat alone recorded a power shortage of 215 million units, the highest for any month in more than a decade.
The easing of pandemic restrictions and opening of the economy led to a sudden spurt in demand for power. That demand could not be met with ready supplies, leading to a mismatch between demand and supply for coal.
India has one of the world’s largest reserves of coal and is the second-largest importer of the fossil fuel, yet it is in crisis. While the shortage could in part be attributed to the Covid-19 pandemic, India’s measures to limit production of domestic coal to meet its climate targets are one of the major reasons for the demand-supply mismatch.
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India’s coal dependence is why Modi’s net zero emissions by 2070 pledge surprised many at COP26
The power crisis is not isolated to coal-powered plants. Crude oil provides around a quarter of India’s power, and more than 80 per cent of its oil demand is met through imports.
