India Can Save ₹14.7 Lakh Crore by 2034 by Replacing Coal Imports with Renewable Energy: Reports

According to the news report, India stands to save an estimated ₹14,70,673 crore (US$ 173 billion) between 2025 and 2034 by replacing its reliance on imported thermal coal with domestically generated renewable energy. According to a recent report by Climate Risk Horizons, achieving this would require the country to add 50 gigawatts (GW) of renewable energy capacity annually—a target that aligns with the government’s existing energy goals.

Annual Addition of 50 GW Could End Coal Imports by 2029

The report highlights that by sustaining the pace of 50 GW of renewable capacity addition each year, India could completely eliminate thermal coal imports by 2029. Between 2025 and 2029 alone, this transition could result in foreign exchange savings worth ₹5,61,066 crore (US$ 66 billion), reducing the country’s vulnerability to volatile international coal prices and currency fluctuations.

Read More: India Surpasses Germany to Become World’s 3rd Largest Wind and Solar Energy Producer in 2024. 

India’s Current Dependence on Coal Imports

In FY24, India imported 206 million tonnes of thermal coal—around 20% of its total consumption—at a cost of ₹1,78,521 crore (US$ 21 billion). Over the past decade, thermal coal imports have increased by 58%, while their value has surged 124%, driven largely by global price volatility and a weakening rupee.

Risks of Imported Coal: Financial and Physical

The report underlines the risks tied to coal import dependency, ranging from geopolitical instability to natural disasters that can disrupt supply chains. Furthermore, the volatility of global energy prices imposes financial stress on power producers and end consumers. As India continues to grow, such vulnerabilities could only intensify unless addressed proactively.

Rising Power Demand Driven by Growth and Climate

India’s electricity demand is projected to rise significantly due to rapid urbanisation, industrial development, and the increasing use of electric vehicles and appliances. Per capita electricity consumption rose from 957 kWh in 2013 to 1,331 kWh in 2022. Climate change is also playing a role, with rising temperatures and frequent heatwaves pushing electricity usage higher during peak seasons.

Government’s Green Energy Target: 500 GW by 2030

To respond to these challenges and reduce its carbon footprint, India has committed to reaching 500 GW of non-fossil fuel energy capacity by 2030. The strategy includes adding 50 GW of renewable capacity annually until 2027-28. With 151 GW of solar and wind capacity already installed, along with hydro and biogas contributions, India is making steady progress toward its energy transformation.

Conclusion

The findings from Climate Risk Horizons make a compelling case: India’s transition to renewables is not only essential for sustainability but also makes strong financial sense. Reducing dependence on coal imports could buffer the economy against global shocks and redirect substantial capital into domestic development. With political will and continued investment, India is poised to reshape its energy future while securing massive long-term savings.

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