India identifies thermal power as key to India’s energy diversification roadmap, shows Economic Survey report

Thermal power, especially coal-based power plants, will play a significant role in providing base-load support for the large-scale deployment of renewables as India faces the dual challenge of meeting energy demands while reducing carbon emissions, according to the Economic Survey released on Monday.

India’s renewed commitment to maintaining coal as an important part of its energy mix is crucial, especially given the growing pressure from developed countries to phase out coal-based power generation. India generates over 70% of its power through coal and has insisted that it will continue to expand thermal power, considering the country's developmental needs. At COP28 in Dubai, India committed to continuing its efforts to expand its renewable energy share as part of its goal to achieve net zero emissions by 2070.

While India’s renewable energy growth is well-established, with solar power capacity increasing over 25 times between 2014 and 2023, the survey highlights several risks associated with large-scale renewable energy deployment. These include intermittency, grid integration, backup power generation, storage, handling of nuclear and solar panel waste, and the implications of biofuel production on food security.

“It is important to supplement renewable energy with other non-fossil fuel sources such as nuclear, biofuels, and hydrogen. India must avoid shifting its high dependency on petroleum imports to a high dependency on solar PV panels and critical minerals, whose supply chains and geopolitics may be even trickier,” the survey adds.

The document, in the chapter "Climate Change and Energy Transition: Dealing with Trade-offs," emphasizes the importance of diversified energy sources, including renewables (solar, wind, large and small hydro), green hydrogen, nuclear, and biofuels.

“Such diversification will help minimize risks associated with energy systems while pursuing low-emission pathways in line with national commitments. Diversification also includes a significant role for thermal power in providing the base load to support large-scale deployment of renewables,” it adds.

The transition to low-carbon pathways requires technology and financial resources.

“There is a need to enhance international cooperation in R&D, especially in the domains of distributed renewable energy, offshore wind, geothermal, tidal energy, biofuels, compressed bio gas, green hydrogen, energy storage, electrolysers, and nuclear power (including small modular reactors SMR),” it states.

The survey calls for a more balanced approach to climate change, emphasizing the importance of focusing on nearer-term policy goals of improving human welfare rather than being excessively preoccupied with the longer-term goal of global climate management.