Context:
- An editorial analysis highlights how Chile’s coal phase-out strategy offers valuable lessons for India’s energy transition, especially as India balances economic growth, energy security, and climate commitments.
- India’s continued dependence on coal has affected its Climate Change Performance Index (CCPI) ranking, while countries like Chile demonstrate feasible pathways for rapid decarbonisation.
Key Highlights:
India’s Coal Dependence
- Coal accounts for over 50% of India’s primary energy use.
- In 2024, coal contributed nearly 75% of electricity generation, despite expansion of renewables.
- India ranked 23rd in the Climate Change Performance Index at COP30, largely due to slow coal phase-out.
Chile’s Coal Transition Model
- Chile reduced coal’s share in electricity generation from 43.6% (2016) to 17.5% (2024).
- Renewable energy exceeds 60% of electricity generation.
- Transition enabled through:
- Carbon tax
- Strict emission standards
- Competitive renewable auctions
- Energy storage systems ensuring grid stability
Expert and Policy Insights
- TERI estimates India can fully phase out coal power by 2050 to achieve net-zero emissions.
- Coal phase-out described as a “no regrets” policy, preventing climate damage that could cost 3%–10% of India’s GDP by 2100.
Economic and Social Dimensions
- Need for removal of old coal plants, cancellation of new approvals, and replacement with firm renewable power + storage.
- Proposal for a “Green Energy Transition India Fund” to support:
- Worker reskilling
- Community welfare in coal-dependent regions
- Emphasis on blended finance involving public funds, private capital, and international support.
Relevant Prelims Points:
- Issue: India’s slow coal phase-out amid rising climate risks.
- Causes:
- Energy security concerns
- Coal-based industrial structure
- Employment dependence in coal regions
- Government Initiatives:
- National Solar Mission
- National Green Hydrogen Mission
- Renewable Energy Auctions
- Benefits of Coal Phase-Out:
- Reduced emissions and pollution
- Long-term economic savings
- Alignment with global climate goals
- Challenges:
- Grid stability
- Just transition for workers
- High upfront capital costs
- Impact:
- Enhanced climate leadership
- Sustainable and resilient energy system
Relevant Mains Points:
Facts and Definitions
- Decarbonisation: Reduction of carbon emissions from energy and economic activities.
- Net-Zero: Balancing greenhouse gas emissions with removals.
- Carbon Pricing: Economic mechanism to internalize environmental costs of emissions.
Conceptual and Static Linkages
- Energy transition and Just Transition Framework
- Climate mitigation vs development trade-offs
- Role of market-based instruments in environmental governance
Keywords
- Coal phase-out, firm renewables, energy storage, carbon tax, just transition
Way Forward
- Gradual retirement of inefficient coal plants
- Introduce carbon pricing and clean dispatch rules
- Remove coal subsidies and redirect support to renewables
- Scale up energy storage and grid reforms
- Establish a dedicated transition fund for workers and communities
UPSC Relevance (GS-wise):
- GS 3: Environment & Ecology – Climate change mitigation, decarbonisation
- GS 3: Economy – Energy transition, sustainable growth
- GS 2: Governance – Policy reforms, welfare of displaced workers