Years of coal backlash undermine India's energy security push

illuminem summarises for you the essential news of the day. Read the full piece on Financial Post or enjoy below:

🗞️ Driving the news: India's plan to expand its coal power fleet is faltering due to a shortage of willing and capable companies to build new plants
• Out of the 15 GW of thermal capacity planned for the year ending March 2025, only about half is expected to be completed
• A decade of global coal backlash has limited investment, equipment suppliers, and financing options

🔭 The context: Despite rapid growth in renewables, India's rising power demand has led the government to double down on coal, with plans for nearly 90 GW of new capacity in the next decade
• However, the country now relies on just two key domestic suppliers—BHEL and Larsen & Toubro—after major global players like GE and Toshiba (See sustainability performance) stopped taking new coal orders
• Import restrictions on Chinese power equipment have further strained supply chains and increased costs

🌍 Why it matters for the planet: The rising costs and logistical hurdles of coal plant construction could accelerate India's shift towards renewable energy
• Environmental analysts warn that costly coal projects risk becoming stranded assets, making clean energy a more attractive investment
• This could mark a turning point for India's energy transition

⏭️ What's next: Higher coal plant construction costs—up 50% since 2023—could deter developers and push India further towards renewables
• Some state power companies are already negotiating lower prices, but supply chain bottlenecks remain a challenge
• If coal becomes too expensive, India may need to rethink its long-term energy strategy

💬 One quote: "When the economics don’t support a form of energy, that’s when a drastic shift happens. We are at that moment now." — Sunil Dahiya, founder of EnviroCatalysts

📈 One stat: The cost of building a new coal power plant in India has surged to ₹130 million ($1.5 million) per megawatt—over 50% higher than in 2023

See here detailed sustainability performance of companies like Adani Group, GE Vernova and Larsen & Toubro and Toshiba Corporation

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