Coal India has announced an ambitious plan to set up clean energy projects totaling around 4.5 gigawatts at a cost of ₹25,000 crore (approximately $3 billion). This initiative is part of the company’s broader goal to achieve net-zero carbon emissions from its operations, aligning with India’s national target of reaching net-zero by 2070.
As a state-owned miner, Coal India has long been associated with coal production, which remains a crucial component of India’s energy mix. However, the company is now diversifying its portfolio to include renewable energy sources like solar and wind. This shift is vital as India aims to balance its increasing power needs with environmental sustainability.
The clean energy projects will primarily supply power to the upcoming green ammonia facilities of AM Green Ammonia (India), which is eyeing a production target of 5 million tons per annum (MTPA) of green ammonia by 2030. Although Coal India has not specified a timeline for the construction of these projects, the collaboration marks a significant step toward cleaner energy solutions.
This move comes at a critical time when electricity demand in India is surging, driven by climate change and rapid industrialization. The country aims to expand its coal-fired capacity by 80 gigawatts by 2031-32, increasing from the current 222 GW. At the same time, India is committed to adding at least 500 GW of clean energy capacity by 2030, up from 172 GW today.
Despite these ambitious goals, India’s renewable energy sector faces several challenges. Issues such as weak demand for tenders, difficulties in land acquisition, delays in power purchase agreements, and project cancellations have hindered progress. For instance, the slow pace of tendering can lead to project delays, affecting the overall growth of the sector.
Experts believe that Coal India’s shift toward renewable energy is a positive step, but they emphasize the need for supportive policies and infrastructure to ensure successful implementation. “For India to meet its renewable targets, it must tackle these challenges head-on,” says Dr. Anjali Sharma, an energy analyst. “Coal India’s investment in clean energy could serve as a model for other companies if managed well.”
Coal India’s commitment to invest in clean energy projects not only contributes to the company’s sustainability goals but also aligns with India’s broader vision for a greener future. By diversifying its energy sources, Coal India is taking proactive steps in the fight against climate change, showcasing that even traditional fossil fuel companies can adapt to the evolving energy landscape.
As the world moves towards cleaner energy, Coal India’s plans highlight the importance of balancing coal dependency with renewable energy investments, paving the way for a more sustainable energy future in India.
