NEW DELHI, India — As India continues to develop and expand, it is forced to find new ways to meet the ever growing energy demands of the 1.2 billion-strong nation. While some are championing coal as their savior, new studies say moving in a greener direction makes much more economical sense.
With roughly a seventh of the world’s population within its borders, it’s no wonder that India has massive energy demands. While India is nowhere near the energy consumption rates of developed nations like the U.S., it still uses more than 820 billion kWh of power each year.
Yet despite that, of the 68 percent of the population that live in rural areas, 45 percent of those households–roughly 75 million people–have no electricity. Even eight percent of urban residents are currently without power.
But the construction of one Australian coal mine could lift all of those without power, and more, out of electrical poverty, according to Australian Prime Minister Tony Abbott. Abbott contends that the delay of the new Carmichael coal mine, the largest in Australian history, is getting in the way of what would be a critical benefit to human welfare in the country.
A report by the Vashuda Foundation, however, says not so fast. In their report titled “Electricity For All In India: Why Coal Is Not Always King” the study’s researchers argue that the people who would benefit most from expanded coal power aren’t those who need it most, which are the rural and the impoverished.
Why not coal? According to the study, coal has a number of problems. It’s expensive, especially given that the low quality of domestic coal leaves India reliant on imports, it’s not sustainable and it’s expensive to expand. The researchers found that not only is there already a large amount of unmet demand for electricity, but the current supply is unreliable.
Also, for households more than five kilometers off the electrical grid, building the infrastructure to bring the supply to them would be massively expensive, not to mention the health risks associated with burning coal.
The researchers say that India’s best hope for reliable, sustainable energy production is to go off the grid and go green. Following a detailed analysis of the actual costs of generating power via conventional systems versus via decentralized renewable electricity sources, the study concluded that the renewable energy sources where both more efficient and less expensive.
The Institute of Energy Economics and Financial Analysis reported similar findings, showing that the cost of producing electricity in India with Australian coal is actually two times the average wholesale cost of electricity. If just one percent of India’s landmass was outfitted to harness solar energy at just 10 percent efficiency, says a Guardian report, the country could generate almost 600 times its current energy demands.
“By focusing on increasing generation capacity by bringing new coal power plants online, the Indian government is missing the boat as regards the other benefits that India’s huge renewable energy potential can bring,” said the authors of the Vashuda report.
“There exists a win-win solution to the problem of electricity supply for those most in need. The alternative solution of decentralized renewable energy is not only cost-effective, but offers the best prospects for ensuring reliable and sustainable energy access for all.”
– Gina Lehner
Sources: The Guardian, Vasudha Foundation
Photo: Flickr