The largest coal producer in the world, India Coal Limited, will close 37 mines in the next few months. Instead, he turns to renewable energies. The reasons are manifold.
The Indian company Coal India Limited is the largest coal producer in the world. Even before the Chinese challengers. But now the turn of time begins in the land of the Ganges.
By the end of March 2018, coal giant will be spending around 10% of its production, which means the closure of a total of 37 coal mines across India.
Price decline as the main motivation
The decision of Coal India Ltd can therefore be regarded as a strategic future investment in the face of numerous failures of larger and smaller competitors.
Just last year, the largest private coal producer, the US Company Peabody, had to file for bankruptcy.
The cost of extracting energy from coal has exploded in the past few years in such a way that it is simply less and less worthwhile.
In addition, prices for other sources of energy are falling. “For the first time, solar energy is cheaper than coal in India and this has far reaching implications for the transformation of the global energy market,” commented Tim Buckley of the US Institute for Energy Economics and Financial Analysis (IEEFA).
With the motto ‘moving away from finite raw material coal and ever-available solar energy’, Coal India is not least consistent with the plans of Indian Prime Minister Narendra Modi, who supports the climate deal with Paris with an ambitious national action plan.
The environment also calls for these energies
This step is urgently required not only from a political perspective.
For as a report from the New York Times earlier this year revealed, India is hardly in the Chinese People’s Republic in terms of air pollution.
About 1.1 million Indians therefore die every year because of the devastating air pollution.
Now the country has forbidden the construction of new coal-fired power plants, which should bring a power of 14 GW.
India’s energy minister, Piyush Goyal, said in this context that the country, which was promoted last year by the International Energy Agency to the next hub of coal, is instead using renewable energies.
Shutting down and new buildings is not the solution. Even today, the country can barely meet the energy needs of its 1.31 billion inhabitants. An alternative must be.
Renewable energies are intended to cover energy supplies
The Minister of Energy announced that Coal India would produce 1 GW “clean energy” from renewables this year.
From 2020 onwards, no more kilowatt-hours from the incineration of coal will be produced.
Despite the ambitious climate, which also includes the exclusive approval of electric vehicles from 2030 onwards, India’s northern neighbor China remains a pioneer in the expansion of renewable energies.
The world’s largest floating solar power plant has contributed to this since the latest in May 2017 with an output of 40 million watts.
Incidentally, on the site of a former coal mining.