Unprecedented Heatwave Intensifies India's Coal Crisis

India Faces Power Crisis Amidst Record-Breaking Heatwave and Coal Shortage

India, the world's third-largest coal producer, is currently grappling with a long-running wave of scorching heat since March 2022. The heatwave, a direct manifestation of climate change, according to experts, has led to a series of challenges for the South Asian country, including a coal shortage that triggered the country's worst power crisis in more than six years.

As of May 2022, 25 people had already succumbed to the deadly heatwave. The extreme temperatures have also led to health issues among residents, including heat boils, skin allergies, dehydration, upset stomachs, fever, and even malaria. Moreover, the heatwave has contributed to an economic slowdown due to a loss of productivity.

To meet the soaring demand and stop the power shortages that have now occurred in more than half of all states, the government has ordered coal-fired power plants to operate at full capacity and revived production from nearly 100 inoperative mines. India's coal production rose by 29% compared to the same month last year in April 2022, hitting nearly 52 million tonnes.

Despite this increase, over 80% of India's energy needs are still met by fossil fuels. This reliance on coal, which provides more than 40% of India's electricity supply, has put India's coal-dominated energy system under further strain.

However, India has shown commitment to a greener future. The country pledged to reach carbon neutrality by 2070 at COP26. India is now fourth globally for overall installed renewable energy capacity and is rapidly expanding its renewable energy capacity. The government aims to increase renewable energy by 50% and reduce carbon emissions significantly by 2030.

India is heavily investing in green hydrogen with $92 billion to produce 5 million tons annually by 2030. This investment is part of a plan for over 500 GW of new generation capacity in 2025, about 400 GW from renewables.

In a bid to expedite this transition, the government has eased green rules for coal mines to expand production by a further 10% without requiring new impact assessment or consulting local residents. This decision, however, raises concerns about the country's commitment to its green transition plan and the potential impact on the environment and local communities.

Despite these challenges, India's economy has experienced a rapid growth of almost 40% since 2014. The country is also seeking help from importers to ensure more coal supplies, asking for approximately 19 million tons between April and June.

India's current climate change-fuelled challenge could compromise its green transition progress. However, with its ambitious plans for renewable energy and green hydrogen, India remains hopeful for a sustainable future.