Energy transition and Just Transition must go hand in hand – as coal mines become rapidly unprofitable

The writing is on the wall. A few days back, Coal India Limited (CIL), the world’s biggest coal producer and India’s largest CO2 emitter announced its plans to become a ‘net-zero energy company’ by 2023-24.

- Chandra Bhushan

The company plans to install 3,000 MW of solar power to meet all its electricity demand, which will also reduce its power expenses. The foray into solar is part of CIL’s diversification plans to shift from a coal company to an energy company.

NTPC Limited, India’s largest coal-based power company, has won a bid this week to install 470 MW solar power at Rs 2.01/kWh. This tariff is 40% below the cost of existing coal power in India and less than half the price of new coal-fired power. NTPC has set up a separate renewable energy subsidiary – NTPC Renewable Energy – to build its green energy portfolio.

When the biggest coal mining and coal power companies see their future in renewable energy, it is time for the policymakers to start planning for coal phasedown and Just Transition of coal mining districts.