As many countries around the world pursue carbon reduction and energy transition, Indian coal giant Coal India Limited plans to reopen more than 30 coal mines this year, along with the development of five entirely new ones. According to a June 8 report by the Financial Times, the company stated that India’s renewable energy sector is still unable to meet the country’s growing energy demand.
Energy Demand from 1.4 Billion People Is “Very High”
“It’s already underway,” Coal India Chairman Pramod Agrawal told the Financial Times. The Indian government has already put 27 of these mines up for auction this year, with the remaining five “in preparation” and expected to receive approval soon. According to reports, Coal India operates 310 coal mines across the country, supplying around three-quarters of India’s coal demand. In December last year, India’s Ministry of Coal announced a plan to restart previously closed mines to boost domestic coal production and reduce reliance on imports.
Prasad acknowledged that India’s current renewable energy generation and battery storage systems are still insufficient to meet the country’s growing energy demands. However, he noted that as renewable technologies and storage capabilities improve in the future, coal’s share in India’s overall energy mix will naturally decline.
Despite major domestic conglomerates like the Tata Group investing heavily in solar and wind farms, India still relies on coal for 74% of its electricity generation, the report said. India is working to become a global manufacturing hub. According to Prasad, rising energy consumption among the population and efforts to connect more households to the power grid mean that energy demand for India’s 1.4 billion people remains “very high.” To meet this demand, the company is also preparing to develop five new open-pit coal mines.
India holds the world’s fifth-largest coal reserves, and the government maintains that coal remains “crucial.” Official data shows India added 4 gigawatts of new coal-fired power capacity in 2024, roughly the same as in 2023, keeping coal capacity additions at a five-year high since 2019. By 2032, India plans to add as much as 90 gigawatts of new coal power, focusing on the stability and reliability that coal plants provide.
How Is India Progressing on Renewable Energy?
To support its economic growth, India is expanding renewable energy capacity even as it increases coal-fired power, aiming to transition its electricity mix.
While coal still accounts for over 70% of India’s electricity output, data from India’s federal grid regulator—reviewed by Reuters—shows that in May, coal’s share fell to 70.7%, the lowest in three years.
At the 2021 UN Climate Change Conference, India pledged to achieve carbon neutrality by 2070. The Indian government estimates that coal’s share in power generation will drop from 74% in 2023 to 55% by 2030, and further to 27% by 2047.
Meanwhile, renewable energy output has reached record highs, with clean energy making up a growing share of the power mix. Official data shows that in the 2024–2025 fiscal year ending in March, India added a record 29.5 GW of renewable energy capacity. Currently, 169.4 GW of renewable projects are under construction, and an additional 65.06 GW has been tendered. By 2030, India aims to increase non-fossil fuel capacity to 500 GW.
Reuters also reports that from January to April this year, solar power generation surged by 32.4% year-on-year to a record 57.8 terawatt-hours (TWh). During the same period, total clean energy generation—including solar, wind, and hydro—increased by 23% year-on-year, accounting for 23.3% of India’s total power generation, the highest share ever recorded.
India Faces Major Challenges in Reaching 500 GW Goal
Despite India’s rapid progress in renewable energy in recent years, the country’s goal of reaching 500 GW of non-fossil fuel capacity by 2030 is “arguably one of the most ambitious targets in the world over the next decade.” According to a recent analysis by Indian energy research firm Saurenergy, a number of headwinds — including slow progress, regulatory hurdles, market uncertainty, and trade conflicts — suggest that the current framework may be insufficient to fully support such an aggressive pure renewable energy strategy.
Reuters reports that from January to April this year, India’s fossil fuel-based power generation saw only a slight decline of 0.5 percentage points. With continued economic growth and surging electricity demand, the rapid increase in clean energy output may still struggle to keep pace. In 2024, over two-thirds of new demand is expected to be met by fossil fuels.
Another major constraint lies in India’s power grid infrastructure, which faces technical challenges in absorbing and distributing large volumes of renewable energy. “Transmission line expansion is lagging behind power generation growth, and in some cases, electricity is even being wasted,” the report says. Saurenergy warns that without significant investment in battery storage and load-balancing technologies, the value of new renewable capacity could be undercut—or worse, it could threaten grid stability due to the variable nature of clean energy sources.
Additionally, achieving the 500 GW target is an extremely capital-intensive endeavor. According to India’s 14th National Electricity Plan, an estimated $300 billion in total investment is required by 2032 to meet the renewable energy goal. Even with mature technologies and infrastructure, policy and regulatory barriers frequently stall progress. Many projects, though approved and tendered, remain stuck in limbo. “Uncertain policies and structural challenges have eroded investor confidence and slowed the industry’s momentum,” Saurenergy concluded.
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