Coal India Limited (CIL) and IIT Madras signed a Memorandum of Understanding (MoU) to establish the “Centre for Sustainable Energy” at IIT Madras, aimed at driving advanced R&D and capacity-building in clean and sustainable energy technologies.
Funded by CIL and aligned with its diversification strategy, the Centre will focus on developing technologies for repurposing coal mines, promoting low-carbon innovations, and exploring ways to utilise coal as a sustainable feedstock in India’s emerging clean energy landscape.
The partnership reflects a commitment to advancing India’s energy transition through indigenous research, innovation, and technology development, supporting the nation’s goal of achieving net-zero emissions by 2070.
India’s Energy Mix
(India’s Energy Mix: Coal’s Dominance Continues; Renewable Show Steady Rise)
(Source: India Climate & Energy Dashboard, NITI Aayog)
India’s energy mix over the last five financial years highlights a slow but visible transition towards cleaner energy sources, although fossil fuels remain dominant:
- Coal’s share increased from 56.3% in FY20 to nearly 60% in FY24 - reinforcing its central role in India’s baseload power.
- Oil dependency declined modestly from 30.8% to 28.1%, reflecting improving efficiency and renewable substitution.
- Renewables increased their share from 1.6% to 2.2%, showing progress under government initiatives like the National Solar Mission, PM-KUSUM, PM Surya Ghar Muft Bijli Yojana, etc.
- Hydro and nuclear shares fell slightly, suggesting limited capacity expansion in these sectors.
- Gas remains volatile, hinting at pricing and import constraints.
India’s transition toward clean energy is underway, but remains gradual. A sharper rise in renewables and gas would be needed to align with the 2070 net-zero target.
Coal Consumption in India
(India’s Coal Consumption in Million Tonnes)
(Source: India Climate & Energy Dashboard, NITI Aayog)
- Power (Utility) dominates coal use, showing a steady rise from 547 MT in FY20 to 811 MT in FY24, reflecting India’s heavy reliance on coal-based electricity generation despite renewable expansion.
- Captive power consumption fluctuated, peaking at 115 MT in FY20 but stabilising around 84 MT in later years, suggesting greater efficiency and substitution with renewables.
- ‘Others’ and ‘Steel & Washery’ sectors show cyclical patterns tied to industrial output.
- Cement consumption remained stable (~9 MT), reflecting limited elasticity to macro energy trends.
DhruvStar Industry Insights: What it Means for the Indian Industry
- Power Sector Efficiency & Diversification: The sustained rise in coal consumption by utilities underscores the need for cleaner combustion technologies. Power producers may invest in supercritical (SC) and ultra-supercritical (USC) units and hybrid renewable-coal systems to balance reliability with emission targets.
- Industrial Sectors & Energy Substitution: Stable coal usage in cement and steel indicates limited adoption of alternative fuels. These industries can explore green hydrogen, biomass co-firing, and carbon capture retrofits.
- Captive Power Optimisation: Variations in captive coal use point to fluctuating industrial energy demand. Industries can reduce price volatility by moving towards distributed renewable energy, solar rooftops, and waste-heat recovery systems.
- Policy Opportunity: A gradual decline in the “Others” category signals scope for policy realignment to promote energy efficiency in MSMEs. Incentivisation of low-carbon industrial clusters and coal-to-chemical R&D can help India move faster towards the 2070 net-zero target.
DhruvStar Explainer: What is the Repurposing of Coal Mines
Repurposing coal mines refers to transforming closed or declining coal sites into productive uses such as solar or wind farms, or clean-tech hubs, to ensure continued economic value and support the green transition.
Sources
[1] PIB
[2] NITI Aayog
[3] Ministry of Coal
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