by As of mid‑2025, India has achieved a monumental milestone: non‑fossil energy sources contribute nearly 50 percent of installed power capacity—roughly 235 GW of a 485 GW system. Yet coal-fired plants still generate about 75 percent of actual electricity, sending a clear signal that capacity alone doesn’t equal clean energy. Electricity demand has surged, with per‑capita consumption rising 45 percent in a decade to ~1,400 kWh in 2023‑24. The challenge is undeniable: powering growth without sacrificing air quality, climate goals, or public health.
The Core Issue: Coal Amid Renewable Momentum
India added a record 44 GW of solar and wind power in FY 2024‑25, and clean energy capacity has now surpassed 220 GW. Despite this increase, coal and lignite still form 45 percent of capacity (≈ 246 GW) and account for over 95 percent of sectoral CO₂ emissions—which reached 1.4 billion tonnes CO₂‑eq in 2023.
Coal plants remain one of India’s deadliest air pollution sources: they contribute 13 percent of ambient PM₂.₅, leading to ≈ 112,000 premature deaths annually, and construction of planned thermal projects would expose 844,000 more lives over their lifespans. Even though 2015 emission norms require flue‑gas desulfurization (FGD), recent exemptions for over 20,000 MW of coal capacity in Maharashtra and Punjab threaten air quality gains. Compounding issues, over 50 GW of renewable projects are stranded—lacking grid connection or power-purchase agreements—pointing to regulatory, planning, and integration failures.
Why the Power–Environment Equation Remains Imbalanced
- Coal Posture: NEP2023 anticipates ≈ 90 GW more coal power through 2032, keeping coal as ~55 percent of generation by 2030, undermining emissions targets.
- Grid & Storage Crunch: With pumped hydro energy storage at just ~5 GW (out of a 35 GW target by 2032) and delays in battery-storage deployment, renewables remain vulnerable to intermittency .
- Emissions still high: Electricity’s emission intensity is ~713 g CO₂/kWh, higher than the global average—even though renewables cut projected coal emissions in 2023 by 13 percent compared to a coal-only model.
Five Strategic Pathways Forward
| Action | What India Should Do |
|---|---|
| 1. Decommission and decarbonise coal | Fast-track retirement of sub‑critical units; boost efficiency and emissions reduction via biomass co‑firing; enforce dispatch based on emissions intensity—aligned with CSE’s roadmap for 30 percent emission reduction by 2032 . |
| 2. Reinforce pollution controls | Reverse 2025 FGD rollbacks that exempt 20,000+ MW; couple compliance with PPA terms and renewal of operating licences. |
| 3. Reinforce grid & storage infrastructure | Unlock stranded 50 GW of renewables via national transmission corridors and battery storage investments; enforce uniform tariffs for solar peak use via time-of-day pricing. |
| 4. Scale decentralised renewables | Expand rooftop solar, solar pumps (PM‑KUSUM), microgrids and commercial hybrid RE + storage plants to offset demand and improve energy access. |
| 5. Align fiscal, market and climate levers | Begin mandatory carbon trading by 2026; redirect coal cess revenues toward clean energy and terrestrial carbon credits; mandate ≥40 percent green PPA purchases by distribution utilities by 2030. |
Cross-Cutting Enablers
- Launch green hydrogen and EV cluster power hubs based on clean electricity.
- Pilot carbon-capture technology at new ultra‑supercritical plants like Khargone to stretch transition timelines.
- Institutional reform: long-term PPAs, payment guarantees for project developers, and PoL timelines aligned with RE capacity expansion.
- Leverage green bonds and concessional international financing to avoid fiscal strain.
Conclusion
India’s power transformation is both real and fragile. Though the country has hit the non‑fossil capacity 50 percent mark sooner than planned, coal continues to dominate electricity generation, pollution, and climate risk. Meeting future demand—projected to triple by 2040—doesn’t require more coal; it demands smarter electricity planning, integrated-infrastructure investment, and a genuine shift toward clean, reliable power. With urgency and coordination, India can light its path to prosperity without dimming its climate or health prospects.
