No Economic Rationale to Shut Down Coal-Based Power Plants, Says Economic Survey

No Economic Rationale to shut down coal-based power plants is highlighted in the Economic Survey of 2024-25, emphasizing the importance of energy security for India's development goals by 2047. This is crucial for UPSC aspirants focusing on GS Paper 3, as it relates to energy, environment, and economic development. Last Updated: 2025-02-04

Key Facts About Coal-Based Power Plants

• Coal Dependency for Development: India should prioritize development before achieving net-zero emissions.
• Resistance to International Pressure: Coal plants should remain operational due to their lifespan and investment.
• Comparative Resource Availability: India has limited natural gas resources compared to coal.
• Greenhouse Gas Emissions: Coal remains essential despite pressure to reduce greenhouse gas emissions.
• Costly Grid Integration: Significant investment is needed for integrating renewable energy.
• Battery Storage Issues: Managing intermittency through battery development is crucial.
• Resource Accessibility: Limited access to minerals for renewable technology in India.
• Geopolitical Vulnerabilities: Caution advised regarding reliance on external energy imports.

India's Energy Security and Development Goals

The macro-level significance of maintaining coal-based power plants lies in securing India's energy future while meeting its development objectives. Coal is pivotal to India's strategic goal of achieving energy security by 2047, ensuring affordable energy to support economic growth. Despite international comparisons pushing for renewable energy, India's unique resource constraints and high energy demand necessitate a balanced approach to energy transition.

Related Government Schemes/Policies

• National Electricity Policy: Aims to provide access to electricity for all households.
• Integrated Energy Policy: Focuses on energy security and sustainable development.
• National Action Plan on Climate Change: Addresses climate change while ensuring energy security.

UPSC Relevance

• GS Paper 3: Energy, Environment, and Economic Development.
• Prelims Angle: Questions on India's energy mix, coal reserves, and energy policies.
• Mains Angle: Essays on energy security, sustainable development, and balancing economic growth with environmental concerns.
• Essay Paper: Topics on energy transition and strategic resource management.

FAQ Section

• What is the Economic Survey's stance on coal-based power plants? The Economic Survey of 2024-25 states there is no economic rationale to shut down coal-based power plants, emphasizing their role in energy security.
• Why is coal important for India? Coal is crucial for India's energy security, providing affordable energy to meet rising demands and supporting development goals before transitioning to net-zero emissions by 2047.
• What are the key features of India's energy strategy? India's strategy includes leveraging domestic coal resources, managing renewable energy integration, and ensuring energy security while aiming for net-zero emissions post-2047.