How can India’s Thermal Power Plants Transition Sustainably and Inclusively?

Shifting from coal-based energy is crucial for climate action, but it poses challenges for those whose livelihoods depend on coal. A just transition ensures this shift does not disproportionately impact workers and communities reliant on the thermal power sector. CEEP recommends the need to adopt an inclusive approach – one that prioritises the needs of those most vulnerable.

A just transition requires bringing everyone to the table – government, industry, workers, communities, and civil society. Open dialogue is crucial to navigate trade-offs and ensure everyone has a voice in shaping the future. Decision-making processes must be fair and inclusive, with all stakeholders feeling heard and respected.

CEEP’s study on the Kota Super Thermal Power Station (KSTPS) in Rajasthan - “Navigating Energy Transition: Understanding Socio-Economic Complexities and Intersectionality in Thermal Power Plants” - explores the socio-economic effects of moving away from coal. It underscores the need to address historical inequities, especially for contractual workers, and highlights the importance of fair distribution of costs and benefits. The findings advocate for decent work, social protection, and inclusive decision-making, offering key insights for a just transition in India's thermal power plants.

The blogpost uses the case of Kota Super Thermal Power Station (KSTPS) to offer insights and recommendations applicable to the broader context of a just transition for thermal power plants in India.?

Inclusive Stakeholder Engagement

A just transition away from coal necessitates a comprehensive and inclusive approach. This involves establishing ongoing dialogue platforms that bring together all stakeholders, including government agencies at both the central and state levels, power generation companies, local authorities, worker representatives and trade unions, affected communities, and civil society organisations. This broad-based dialogue is crucial to navigate the inevitable trade-offs and potential conflicts of interest that arise during the transition.?

By fostering understanding, identifying common ground, and building consensus on key goals and strategies, stakeholders can collectively work towards a future that is both economically and environmentally sustainable.?

Furthermore, it is essential that decision-making processes related to plant closures, repurposing initiatives, and alternative economic development programmes are transparent and accountable. This ensures that all voices are heard, concerns are addressed, and a sense of fairness prevails throughout the transition.

Comprehensive Socio-Economic Impact Assessments

Impact assessments for coal transitions must adopt a comprehensive approach that goes beyond traditional economic metrics like GDP and job numbers. This involves considering social, environmental, and health factors to fully grasp the consequences of the transition.?

Assessments must utilise an intersectional lens, recognising that vulnerabilities are influenced by factors like caste, class, gender, age, and location, as exemplified by the KSTPS case where lower-wage workers from disadvantaged backgrounds face disproportionate impacts. This makes it essential to design interventions that cater to the specific needs of these diverse groups.?

Furthermore, prioritising active participation of affected workers and communities ensures their lived experiences and these priorities are incorporated into the planning process through surveys, focus groups, and consultations. By centering the voices of those most impacted, the transition can be more equitable and responsive to the needs of all stakeholders.

Social Protection and Safety Nets

The authors point to the need to strengthen and broaden social protection mechanisms. This requires effective implementation of existing social security schemes like ESI and EPF, especially for vulnerable contractual workers. Additionally, coverage must be expanded to include informal sector workers, such as those in the fly ash brick industry, who are often excluded from formal protections.?

Existing welfare programmes should be adapted to address the specific needs of impacted communities, with a focus on health, education, food security, and income support. Critically, investments in reskilling and upskilling programmes are needed to equip workers with skills relevant to emerging sectors, such as renewable energy. Recognising prior skills and experience, even without formal qualifications, will be key to enhancing employability and facilitating a smooth transition for workers into the new economy.

Economic Diversification and Job Creation?

Transitioning away from coal requires a multi-pronged approach to ensure economic stability for affected communities. Proactive planning at national and regional levels is crucial to diversify local economies, identify new growth sectors, attract investment, and foster sustainable development.?

Repurposing thermal power plant sites, such as KSTPS, for clean energy projects, industrial parks, or other economically viable activities can generate local employment and revitalise the area. Supporting Small and Medium Enterprises (SMEs) that depend on the coal industry, through access to finance, business development services, and market linkages, is essential to mitigate the ripple effect of plant closures.?

Responsible Governance and Institutional Capacity

Effective governance is the backbone of successful transition management. This requires establishing a clear framework with well-defined roles and responsibilities for all stakeholders, including government agencies, power generation companies, regulatory bodies, and local authorities. Coordination and collaboration across different levels of government and various sectors are essential, with mechanisms for inter-ministerial coordination, public-private partnerships, and community engagement.?

Robust monitoring and evaluation systems are crucial to track progress, assess the effectiveness of policies and programs, and identify areas for improvement. Prioritising data collection, analysis, and dissemination ensures transparency and accountability throughout the transition process. Finally, continuous learning and adaptation are vital to navigate unforeseen challenges and ensure the transition remains responsive to the evolving needs of affected communities and the broader economy.

Social Dialogue and Labour Rights

A just transition for India's thermal power plant workforce requires empowering and supporting trade unions, particularly those representing contractual workers, to effectively advocate for workers' rights and interests. Encouraging collective bargaining agreements between workers and employers can help mitigate the negative impacts of job losses by ensuring fair compensation, retraining opportunities, and other support measures.?

The complex political economy surrounding thermal power plants, with vested interests from government officials, plant management, and related industries, creates resistance to change. Navigating these power dynamics and fostering a shared commitment to a just transition will require consensus-building through open dialogue and engagement.?

These recommendations, based on the KSTPS case study, provide a starting point for comprehensive policies and strategies that prioritise inclusivity, equity, and sustainability, ensuring that India's transition away from coal benefits workers, communities, and the environment.