The Economic sense for phasing out coal
The recently released report by Rocky Mountain Institute (RMI) highlights the urgency of phasing out coal-based power plants as part of early retirement. Globally about 2000 GW of coal-based power plants are operational and the following cost of renewables has led to about 39% of coal-based power plants uncompetitive with reference to new renewables and energy storage technologies.
In India we have about 280 GW of coal-based power plants and about 17% of existing plants are uncompetitive with reference to renewables plus energy storage.
The rising coal cost in the recent months has led to a debate for replacing incompetent coal plants with renewables plus storage technologies. The shift from coal to renewables will save about US$8 billion in 2022 and US$17 billion by 2025.
There is a need to develop domestic carbon market through which the migration from coal-based power to renewables can incentivise the developers through additional revenues through carbon credits. As per Paris agreement Global coal use must decline by 80% below 2010 levels by 2030.