{"id":74803,"date":"2026-05-25T18:02:27","date_gmt":"2026-05-25T12:32:27","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=74803"},"modified":"2026-05-25T18:08:37","modified_gmt":"2026-05-25T12:38:37","slug":"india-energy-transition-coal","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/editorial-analysis\/25-05-2026\/india-energy-transition-coal","title":{"rendered":"India\u2019s Energy Transition: Why the Green Shift Still Runs on Coal?"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Energy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The recent escalation of <strong>conflict in West Asia <\/strong>and the resulting rise in global crude oil and LNG prices have once again highlighted <strong>India\u2019s vulnerability to external energy shocks.<\/strong><\/li>\n\n\n\n<li><strong>Nearly half of India\u2019s fossil fuel<\/strong> imports transit through the <strong>Strait of Hormuz<\/strong>, including crude oil from Saudi Arabia and LNG imports from Qatar.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Trends in India\u2019s Energy Sector<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Renewable energy accounted for <strong>42.4% of installed power capacity by March 2026<\/strong>, compared to just <strong>0.72% in 2005<\/strong>.<\/li>\n\n\n\n<li>Coal\u2019s share in installed capacity declined from <strong>58.7% in 2005 to 42.2% in 2026<\/strong>.<\/li>\n\n\n\n<li>Since 2017, renewable energy has contributed the largest share of new capacity additions.\n<ul class=\"wp-block-list\">\n<li>However, installed capacity does not translate into actual electricity generation.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>In April 2026, renewables generated only <strong>15.8%<\/strong> of electricity. Coal still contributed around <strong>71.8%<\/strong> of total electricity generation.\n<ul class=\"wp-block-list\">\n<li>It reveals that renewable energy is being added <strong>alongside coal rather than replacing it<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Why Coal Still Dominates?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Baseload Requirement:<\/strong> Coal provides continuous and reliable electricity needed for industries, railways and urban centres.<\/li>\n\n\n\n<li><strong>Intermittency of Renewables:<\/strong> Solar and wind power depend on weather conditions and time of day.<\/li>\n\n\n\n<li><strong>Lack of Storage Infrastructure:<\/strong> India still lacks adequate battery storage and pumped hydro systems.<\/li>\n\n\n\n<li><strong>Grid Limitations:<\/strong> Existing transmission systems are not fully capable of integrating large-scale renewable power.<\/li>\n\n\n\n<li><strong>Slow Retirement of Coal Plants:<\/strong> Very few old coal plants have been phased out.\n<ul class=\"wp-block-list\">\n<li>As a result, coal acts as the balancing source whenever renewable output declines.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Need for Energy Transition in India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Energy Security: <\/strong>India imports over 85% of its crude oil needs. Dependence on imported fossil fuels exposes the economy to geopolitical disruptions and price volatility.<\/li>\n\n\n\n<li><strong>Climate Commitments: <\/strong>Under the <strong>Paris Agreement<\/strong> and <strong>India\u2019s Panchamrit goals <\/strong>announced at COP26, India has committed to:\n<ul class=\"wp-block-list\">\n<li>Achieving <strong>500 GW non-fossil fuel capacity by 2030<\/strong><\/li>\n\n\n\n<li>Reducing emissions intensity<\/li>\n\n\n\n<li>Achieving net-zero emissions by 2070<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Reducing Inflationary Pressures: <\/strong>Global spikes in oil and coal prices directly affect electricity tariffs, transport costs, industrial production, and fiscal deficit.\n<ul class=\"wp-block-list\">\n<li>A stronger renewable system can reduce such external shocks.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Sustainable Economic Growth: <\/strong>Clean energy sectors generate employment in solar manufacturing, green hydrogen, battery storage, and EV ecosystem.<\/li>\n\n\n\n<li><strong>Environmental Protection: <\/strong>Coal-based power contributes significantly to air pollution, greenhouse gas emissions, and public health burden.\n<ul class=\"wp-block-list\">\n<li>Thus, energy transition is necessary for sustainable development.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Concerns, Challenges and Issues in India\u2019s Energy Transition<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Capacity vs Generation Gap: <\/strong>There is a mismatch between renewable installed capacity and actual generation.\n<ul class=\"wp-block-list\">\n<li>Large installed capacity figures create an impression of transition, but coal still dominates real electricity supply.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Intermittent Nature of Renewables: <\/strong>Solar and wind power cannot ensure uninterrupted supply without storage systems, flexible grids, and demand management.<\/li>\n\n\n\n<li><strong>High Cost of Energy Storage: <\/strong>Battery storage remains expensive and technologically dependent on imports.<\/li>\n\n\n\n<li><strong>Grid Modernisation Challenges: <\/strong>India\u2019s transmission infrastructure requires significant upgrades for renewable integration, cross-state transmission, and smart grid management.<\/li>\n\n\n\n<li><strong>Financial Stress in DISCOMs: <\/strong>State electricity distribution companies suffer from high losses, delayed payments, and weak financial health.\n<ul class=\"wp-block-list\">\n<li>It affects renewable power procurement.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Coal Dependency of Key Sectors: <\/strong>Sectors like steel, cement and heavy industries still rely heavily on coal.<\/li>\n\n\n\n<li><strong>Geopolitical Vulnerability: <\/strong>Even domestic electricity prices remain indirectly linked to global fossil fuel markets because coal determines the marginal cost of power generation.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Related Government Efforts and Initiatives<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>National Solar Mission: <\/strong>Launched under the National Action Plan on Climate Change (NAPCC), it aims to promote solar energy deployment.<\/li>\n\n\n\n<li><strong>PM-KUSUM Scheme: <\/strong>Promotes solar pumps and decentralised renewable energy in agriculture.<\/li>\n\n\n\n<li><strong>Green Energy Corridor Project: <\/strong>Focuses on strengthening transmission infrastructure for renewable integration.<\/li>\n\n\n\n<li><strong>National Green Hydrogen Mission: <\/strong>Aims to make India a global hub for green hydrogen production.<\/li>\n\n\n\n<li><strong>Production Linked Incentive (PLI) Scheme: <\/strong>Encourages domestic manufacturing of solar modules, and advanced chemistry batteries.<\/li>\n\n\n\n<li><strong>International Solar Alliance (ISA): <\/strong>India-led initiative promoting global solar cooperation.<\/li>\n\n\n\n<li><strong>Faster Adoption and Manufacturing of Electric Vehicles (FAME): <\/strong>Supports electric mobility and reduction in oil dependence.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Way Forward: What More Needs to be Done?<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Expand Energy Storage Infrastructure: <\/strong>Large-scale investment is needed in battery storage, pumped hydro storage, and grid-scale backup systems.<\/li>\n\n\n\n<li><strong>Modernise the Electricity Grid: <\/strong>India needs to build smart grids, flexible transmission networks, and real-time power balancing systems.<\/li>\n\n\n\n<li><strong>Gradual Coal Transition Strategy: <\/strong>Instead of abrupt shutdowns, India should retire inefficient plants, improve efficiency of existing plants, and ensure just transition for coal-dependent regions.<\/li>\n\n\n\n<li><strong>Strengthen Domestic Manufacturing: <\/strong>Reducing import dependence in solar modules, lithium batteries, and rare earth materials is essential for energy security.<\/li>\n\n\n\n<li><strong>Promote Green Mobility: <\/strong>Expansion of EV infrastructure and public transport can reduce oil imports.<\/li>\n\n\n\n<li><strong>Reform DISCOMs: <\/strong>Financially stable DISCOMs are critical for scaling renewable procurement.<\/li>\n\n\n\n<li><strong>Diversify Energy Sources: <\/strong>India should expand nuclear energy, bioenergy, offshore wind, and green hydrogen.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background has-fixed-layout\" style=\"background-color:#ebecf0\"><tbody><tr><td><strong>Daily Mains Practice Question<\/strong><br><strong>[Q] <\/strong>Examine the structural challenges associated with India\u2019s energy transition and discuss the measures required to build a reliable and sustainable low-carbon energy system.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><a href=\"https:\/\/www.thehindu.com\/opinion\/op-ed\/indias-green-transition-still-runs-on-coal\/article71018368.ece\" target=\"_blank\" rel=\"noopener\">Source: TH<\/a><\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.nextias.com\/ca\/wp-content\/uploads\/2026\/05\/Daily-Editorial-Analysis-24-05-2026.pdf\"><strong>Download PDF<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>Published on:<\/strong> 25 may, 2026<\/p>\n<p>The recent escalation of conflict in West Asia and the resulting rise in global crude oil and LNG prices have once again highlighted India\u2019s vulnerability to external energy shocks.<\/p>\n","protected":false},"author":4,"featured_media":74806,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[22],"tags":[],"class_list":["post-74803","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-editorial-analysis"],"acf":[],"jetpack_featured_media_url":"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/05\/indias-energy-transition.webp","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/74803","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=74803"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/74803\/revisions"}],"predecessor-version":[{"id":74808,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/74803\/revisions\/74808"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media\/74806"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=74803"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=74803"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=74803"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}