NITI Aayog Launches Study to Evaluate Shift to Renewable Energy Sources

NITI Aayog has launched a new initiative aimed at developing a framework for India’s 'just transition' from coal to renewable energy sources, primarily solar and wind. This effort comes in the wake of Finance Minister Nirmala Sitharaman's recent Budget speech, where she emphasized the need for a national policy that balances employment, economic growth, and environmental sustainability.

Currently, coal accounts for approximately 75% of India’s electricity consumption, supported by a network of 643 operational thermal power plants. With more than half of the country's power capacity concentrated in just 21 districts across 11 states, the existing coal-based thermal fleet is relatively young, with three-quarters of the capacity under 20 years old. However, as many as 224 units are expected to reach retirement age by 2030, and two-thirds will be eligible for retirement by 2040.

As the country anticipates a rise in per capita power consumption, the focus will shift to renewable energy sources. India aims to add 500 GW of electric power from non-fossil sources by 2030, significantly surpassing its current installed capacity.

According to a report by iFOREST, the cost of implementing a 'just transition' over the next 30 years could exceed $1 trillion. This will involve phasing out existing coal mines and power plants by 2050, rehabilitating over 343,000 hectares of coal-mining land, converting thermal power units to renewable sources, and providing support for the 5.9 million workers reliant on coal-related jobs.

As India navigates this significant energy transition, the new study by NITI Aayog aims to ensure that the shift towards sustainability is equitable and inclusive for all stakeholders involved.