India’s coal consumption is projected to increase to 1.6 billion tonnes by 2030, as the government considers establishing a domestic coal trading exchange to bolster transparency and energy security amidst ongoing renewable energy expansion.
India’s coal demand is expected to climb to 1.6 billion tonnes by 2030 from about 1.2 billion tonnes now, according to Coal Secretary Vikram Dev Dutt, as higher electricity output and industrial activity keep the fuel at the centre of the country’s energy system. The remarks, reported by Indian media and cited by OilPrice.com, underline how India’s coal use continues to rise even as the government expands renewable energy capacity.
Dutt also said India plans to set up a domestic coal trading exchange, a move intended to make pricing more transparent and strengthen energy security. According to the Coal Ministry’s March 2022 press release, the government had already projected a 63% rise in coal demand by 2030 and argued that more efficient, market-based trading would be needed to handle the increase.
The exchange could eventually pave the way for coal derivatives trading, creating a more formal market for buyers and sellers. That push comes as coal-fired generation still accounts for roughly 60% of India’s electricity output, and officials continue to treat the fuel as a backstop against supply shortfalls during periods of extreme heat.
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