Towards Clean Energy, UK closes its last Coal Power Plant, What about India?

Year 1974. This was remembered for crude oil prices increasing 4 to 5 times. In India, the official retail price of petrol per litre was about Rs. 80 but was sold at Rs. 100 in the market. Same was the trend around the world, which was due to the embargo placed by Organization of Arab Petroleum Exporting Countries (OAPEC) in response to the US support to Israel during Arab and Israel war. The exorbitantly higher oil prices taught the world countries that thermal-oil fuelled power plants should never be planned. Thus, unknowingly, OAPEC did a good thing to the world and coal power became the major option for most of the countries.

It was in year 1974 the United Kingdom (the UK) was the world’s leading coal power generator. It had 57.5GW of coal power, which was about 76% of its total generated power. The year 1974 was significant in the UK for another reason. Since that year, UK has been intentionally reducing its coal power share in its total power generation. UK has successfully completed its mission of closing down all of its coal power plants with the closure of the 2,000MW Ratcliffe-on-solar power plant on 30th September 2024. With this feat, the zero coal energy countries Portugal, Norway, Austria, Belgium, and Sweden have a new club member.

At present in UK, 42% is from Wind, 12% from hydro and bioenergy, gas 20%, nuclear 14%, and balance other minor sources. As non-coal source of power has one-third of cost of generation when compared with coal fueled power, the shifting costs are more than compensated. The only difference is that upfront huge capital is required which UK could provide. UK was one of the most advanced countries to have fossil fuel consumption and higher climate risks. But it pioneered in initiating climate actions. The target of net zero greenhouse gas emissions for the UK is year 2050. While the country is lagging behind its schedule, it is ahead of other countries in meeting its zero emissions targets.

For India, the target to achieve net zero emissions is year 2070. In year 1974, India had 12 GW coal power being 58% of total power capacity. The other sources are hydro 11% and others 31%. In year 2024, the coal power in India is 205.24 GW, about 49% of total power capacity, with renewable energy 43% and balance being other sources.

The increase in the share of renewable energy explains that India has greatly transformed its power generation mix. But India can learn something from UK in expediting to increase the non-thermal sources of power so that the power shortages could be met and in percentage terms the coal power share will come down. Interestingly, the cost difference in India between coal generated power and non-coal power is about 20% unlike that of 75% in UK.

Achieving net zero emissions need not necessarily be with zero coal power. To achieve zero coal power, within 50 years, India has to close all of its 150 coal power plants currently under operation and this is an expensive effort and requires a great resolve. Instead, India should substantially increase its renewable hydro energy, wind, solar, and other clean energy sources at a rapid pace and achieve its net zero greenhouse gas emissions target by year 2070 even without joining the zero coal energy club.

Disclaimer: Dr. Kishore Nuthalapati is an Economist, and is the CFO of BEKEM Infra Projects Pvt Ltd, Hyderabad, India. Views are his personal and do not reflect those of any of the organizations he is or was associated with.