The Government of India’s Department of Coal is gung-ho over the fact
that Coal India is ratcheting its production and stockpiling reserves in
its consumer premises. This is happening despite the large back-down of
many fossil fuel-based energy plants on account of recession in the
manufacturing sector. Coal India and its subsidiaries are facing a
financial crisis as non-earning stockpiles fail to earn any revenue to
pay dues for the coal supplied by these companies. The debate over
fossil fuels like coal will intensify once CIL's financial results are
declared next year.
The Department of Coal's official website
says a cumulative total of 301.56 billion tonnes of coal have been
estimated in the country as on April 1, 2014. Of these about 120 billion
tonnes (40 per cent) are predicted reserves, i.e. unproven. Moreover,
only about 5 billion tonnes comprise prime coking coal. The bulk of all
reserves, about 167 billion tonnes (89 per cent) are non-coking coal.
Deriving from this are 1:6-7 energy yield differentials between
Australian and Indian coal. This implies that Indian reserves would have
to be diminished by a factor of 60-70 per cent for the same energy
creation capacity.
Assuming an average consumption of 600 million
tonnes in 2011, the country’s proven and exploitable reserves of 300
years would perhaps yield no more than 55-75 billion tonnes over a span
of 90-125 years even after factoring commercial farming initiatives that
the department proposes to undertake in the coming months. This figure
would diminish further if the non-energy use of coal is taken into
account or if coal consumption rises further. The total coal consumption
is estimated to increase 2-3 times from 660 million tons/year to 1800
million tons/year; accordingly the CO2 emissions will rise from 1,590
million tons/year to 4,320 million tons/year. This huge growth will only
whittle down coal reserves to possibly 30-40 years. Despite the lofty
claims of the Department of Coal, Narendra Modi’s government has
realised that alternate sources of energy, notably solar, must be
explored if India's development story is to move into high gear without
violating global emission norms.
India’s per capita energy
consumption in 2011 was 600 kgoe compared to China and South Africa at
1881 and 2846 kgoe/capita respectively. Our consumption is a meagre 32
per cent of the global average of 1884 kgoe. Low energy consumption is
naturally reflected in electricity consumption which is a paltry 22 per
cent of the global average of 2875 KwH/capita. The origin of low
electricity consumption lies in a reduced installed capacity of 0.17
KwH/capita against the global average of 0.74 KwH/capita. Therefore,
traditional methods of firewood, kerosene, LPG/PNG, etc. remain the
mainstay of vast swathes of our rural and urban sectors. Even the
electricity that is generated suffers up to 50 per cent transmission and
distribution losses that can effectively bring down the average
availability of paltry supply by nearly half.
The total coal
consumption is estimated to increase 2-3 times from 660 million
tons/year to 1800 million tons/year over the next decade or so;
accordingly the CO2 emissions will also rise from 1,590 million
tons/year to 4,320 million tons/year. PM, SO2, and NOx emissions will at
least double in the same period. Most of the planned plants are
supercritical and ultra- TPPs, which tend to utilize less coal per MWh
of electricity generated. With no emission regulation in place for SO2
and NOx, these are assumed to be uncontrolled. A 100 per cent increase
in terms of impact on health is also forecast.
The total
premature mortality due to the emission from coal-fired TPPs is expected
to grow 2-3 times reaching 186500 to 229500 annually in 2030. Asthma
cases associated with coal-fired TPP emissions are expected to grow to
42.7 million by 2030. Yet India currently has no standards for either
SO2 or NOx. Over the past 40 years, thermal generation has increased to
more than 70 per cent. Given the difficulty of constructing large hydro
projects, its share is unlikely to increase in the future. Nuclear
installed capacity is projected to increase to about 69 GW (under the
most optimistic scenario) from the existing base of about 5 GW. Share of
coal in the electricity generation mix will, regrettably, continue to
range from 50 - 60 per cent in 2035.
A scenario whereby India
reduces the coal mix to 40 per cent is considered to be the highest
possible reduction in coal usage; but this would imply a 22 per cent
share of renewable energy in the electricity generation mix. Even with
this high renewable share, the coal installed capacity must grow to 270
GW by 2035. The likely estimate of installed coal-based power capacity
is 340 GW (50 per cent share) in 2035, which represents significant
growth from the existing installed capacity of 132 GW in 2013 (i.e.,
growth rate of 4.4 per cent per year). Sixty-eight per cent of India's
energy is generated by fossil-fuel/gas-based power projects. Yet the
country presently has an extremely low availability of 0.17 Kwh/person
as compared to 0.74 Kwh in China and 0.89 Kwh in South Africa. Not
surprisingly, India's HDI index is just 0.52 compared with China’s 0.66
and South Africa’s 0.59.
The worst affected states for the TPP
boom are expected to be Andhra/Telangana, Bihar, Chhattisgarh, Gujarat,
Jharkhand, Karnataka, MP, Odisha, Rajasthan, Tamil Nadu, UP and West
Bengal. These states account for a giant share of India’s total
population and geographical area. The impact on health, resulting in
premature deaths, include chronic obstructive pulmonary disease, lower
respiratory infections, cerebrovascular disease, ischemic heart disease,
cancer of the trachea, bronchitis and lung systemic inflammation,
accelerated atherosclerosis and altered cardiac function.
In
2030, the total premature mortality is estimated to claim 80,000-1.15
lakh lives at a cost of Rs 16,000-23,000 crore. Child mortality below
five years would cost India Rs 2,100 crore, 625 million respiratory
cases Rs 6,200 crore, 1.70 lakh chronic bronchitis patients at a cost of
Rs 900 crore. Likewise, there may be an expected 8.4 million cases of
chest discomfort costing Rs 170 crore, 20.9 million asthma attacks
costing Rs 2,100 crore and 9 lakh emergency room visits for Rs. 320
crore. All these figures are for a single year, 2030, alone, that too
with a crumbling public health system. Moreover, the data excludes
figures for equally large casualties from vehicular and industrial
pollution, mostly in urban areas.
The statistics on the damage to
health are fearsome. The annual health cost in Andhra Pradesh is
estimated to rise from Rs 9870 crore in 2017 to 17510 crore in 2030;
Bihar from Rs 9450 crore to Rs 16410 crore; Maharashtra from Rs 12360
crore to Rs 20440 crore per annum. These figures exclude collateral
damage sustained by the environment and flora and fauna.
India
has 30 million hectares of fallow land available. In addition, in the
total geographical area of 329 million hectares, the net area sown is
only 136 million hectares (i.e, 41 per cent). Moreover, Rajasthan’s Thar
desert has an area of 2 lakh sq km, another 7,500 sq km in the Rann of
Kutch, etc. A recent study shows that Delhi’s government buildings have a
combined usable rooftop area of four sq km without using their exterior
wall areas. Add another conservative six sq km by way of the Capital’s
major malls, private hospitals, university and school buildings, private
home rooftops, rooftops of airports and covered stadia like the IP
Velodrome and Siri Fort Auditorium complex, inter-state bus terminals
and railway stations, et al.
Industrial clusters in Delhi and
suitable residential colonies could add another seven sq km, easily
making for 17 sq km that could potentially generate energy. If the
253.13 acres on which the derelict Safdarjang aerodrome in Lutyens’
Delhi stands and is only used for SPG practice and office space, were to
be converted into a solar park, a large part of the city’s energy
demand could have been met in an environment friendly manner. A National
Alternative Fuels R&D Centre and National Scientific Innovation
Centre, each with private industry participation, on this area with
solar panels on its roofs and open spaces would catapult India into
global prominence and give a huge fillip to our solar panel
manufacturers whose panels already dot South African, even Chinese
rooftops.
Our Tier-II & III cities have the potential to
provide several hundred sq km more for on-grid solar energy farms to
meet India’s need of 32,000 hectares. We actually have more than this
relatively modest figure. And this is when rural India that accounts for
72 per cent of India’s population in 2011 hardly receives any power
supply from state/national grids and States’ RE efforts exist no more
than on paper after investing several thousand crore since there is
hardly enough energy generated for all. Surprisingly, all research into
the economics of alternative fuel energy generation, thoughtlessly
project fossil fuel-based energy supplies as the wave of the future when
the world is thinking differently.