According to a new analysis by think tank Climate Risks Horizon, India could save roughly $66 billion in foreign cash by eliminating thermal coal imports by 2029. According to the analysis, if India can add 50 gigawatts of renewable energy capacity each year, it will be able to drastically reduce its dependence on coal and increase its economic stability.
The expansion of renewable energy could save the country approximately $173 billion between 2025 and 2034. This would also reduce strain on India’s energy sector and aid to safeguard foreign exchange reserves.
India’s electrical sector still relies heavily on imported thermal coal. In 2023-24, the country imported 206 million tonnes of coal, meeting roughly 20% of its needs and costing $21 billion. Thermal coal imports increased by 58% over the last decade, but their costs increased by 124% as a result of unpredictable world pricing and a weakening rupee.
From 2013 to 2023, India imported more than 2,128 million tonnes of coal. Renewable energy capacity currently stands at 203.18 gigawatts, representing a 13.5% increase by October 2024.
