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The coal conundrum

While more benign technologies like solar and wind energy are the future, countries like India have the task of providing ‘electricity for all’, something that is impossible without coal
Governments are never short of information, always options. Every day they live the Shakespearean dilemma — to be or not to be. The coal conundrum is a classic case of the Hobson’s choice it is faced with — the demand to ensure 24x7 electricity supply and a desperate need for conservation of nature.

Right now more than 400 million people are without electricity in the country. Those who are fortunate enough to have a connection face hours of power cut. India suffers from on an average 15 per cent of peak demand shortage in electricity supply. This shortage is by no means constant across the country.

Close to 19,000 megawatt (mw) of electricity is generated with the help of diesel generators when the power supply is curtailed. All this has economic and social implications. It leads to loss of man-hours of work, lives in the hospitals and general productivity in the economy.

Out of a total installed capacity of 2,48,509.63 mw as on May 2014, thermal accounts for a little over 68.19 per cent and stands at 1,713,76.09 mw. Coal accounts for 1,47,568.39 mw. But in terms of generation thermal accounts for more than 82 per cent of the total output as is visible from the April 2014 CEA data. Even in thermal, coal dominate production of electricity.

As compared to hydro power or renewable energy, the production in coal fired power plants is far more stable. If there is availability of coal then the plant knows how much power it can generate and in what time. Similarly, the transmission grid can plan its evacuation.

The overwhelming dependence on coal is also due to the fact that India has world’s seven per cent of known coal deposits which is one of the biggest coal reserves. The 250 billion tonnes of coal is enough to power India’s electricity expansion programme for many decades.

This is the reason coal has assumed the place of prominence among the power policy makers. In the last 20 years maximum capacity enhancement has taken place in the coal based power plants. All the near future plans to augment electricity production are based on the expansion of coal based thermal power plants.

However, the perfect plan has suffered a glitch. All the coal reserves lie buried under the last remaining forests reserves of the country. These primary forests are home to tigers and other exotic and endangered species and medicinal flora. They are also the home to millions of tribals whose livelihood is dependent on forest wealth.

Greenpeace India’s report using GIS and government data suggests 13 coal blocks allocated to companies will end up destroying 1.1 million hectares of pristine forests in central India alone.

If the coal mining in 13 blocks gets under way in right earnest we can bid adieu to the forest wealth. We will have to be ready to deal with the wave of displaced tribals entering in nearby towns, totally handicapped in dealing with the new way of life. Their assimilation and integration with the mainstream will pose a tricky social challenge.

However, if the coal is not mined then the need for this raw material will have to be fulfilled through imports. The huge demand from power plants has created a situation where India is now importing coal from Indonesia, South Africa and Australia and has emerged as the third largest importer of coal.

The rising dependence on foreign coal is not good news for the country’s security. India’s traditional and overwhelming dependence on oil has already made us vulnerable and now our increasing dependence on coal from foreign sources is creating a situation where the country’s energy security is severely compromised.

This has forced the new government at the centre to “remove” environment hurdles on the path to achieve the dream of “electricity for all” while the environmentalists and social activists have dug in their heels to oppose them tooth and nail. Both seem to be adamant on their respective positions. While the former is willing to bite the bullet by allowing massive mining operations, the latter is determined not to allow it even an inch of forest land.

However, the solution lies in between two extremes. It has two parts — immediate and long term. The immediate actions can be to start mining in those wastelands that have coal reserves. They are not of high quality still they are good enough.

Secondly, in those areas where mining is allowed in the forest region, strict vigilance has to be ensured for rehabilitation of the people and compensatory forestation. The government should also insist on employment of latest mining technology by the miners to increase efficiency and minimise wastage. A monitoring body should be created that is independent of the government and business bodies. It should have legal power to bite the offenders.

The long term opportunity is to decrease our dependence on coal. Globally, dependence on one source of energy is never considered good for the health of the energy sector. In India, the Planning Commission has raised its concerns about the overwhelming dependence on coal. So the time has come to shift to more benign technologies like solar and wind energy as well as energy efficiency.

Right now India’s projected electricity demand in 2030 would be 8,00,000 mw, but that can come down if we start employing energy efficiency in a mission mode.

To compensate for the loss of forest and livelihood of the tribal or local population, the government and the private power companies that are extracting coal should work together to invest CSR funds into re-growing forest. This can be done in the nearby wasteland where a company has undertaken mining activity or in an abandoned mine or some other barren area within a 50 mile radius.

Efforts should be made to plant local flora and not the exotic species. The locals should be involved in the process and while the land remains with the company or the government, the right to use and sell the produce from the re-grown forest should be given to the local poor or tribals under a 50- year lease period.

This will ensure social stability as the tribals will have their source of livelihood with them. Then they can decide on their pace to integrate with the modern society.

Source: Financial Chronicle