India’s Energy Future: Coal, Oil, and Renewables – Insights from S&P Global
India’s energy landscape is set to remain heavily reliant on coal, even as the country explores opportunities in oil, LNG, and renewable energy. According to S&P Global Commodity Insights, India’s strategic priorities in energy security, affordability, and sustainability are shaping its dynamic energy landscape.
Coal’s Dominance
Pritish Raj, Managing Pricing Editor for Asia Thermal Coal at S&P Global Commodity Insights, stated that coal will continue to be a cornerstone of India’s power generation. He emphasized that India’s growing power demand will necessitate a substantial increase in coal consumption. Despite significant strides in domestic coal production, coal imports will remain vital due to challenges related to the quality of domestic coal and transportation inefficiencies.
Energy Trilemma
Joel Hanley, Global Director of Crude & Fuel Oil Markets at S&P Global Commodity Insights, highlighted India’s complex energy trilemma of ensuring security, affordability, and sustainability. India’s ambition to become carbon neutral by 2070 requires a balance between economic growth and sustainable energy investments. Hanley noted that discounted oil trade with Russia has bolstered affordability.
Rising LNG Imports
Kenneth Foo, Associate Editorial Director for Asia LNG at S&P Global Commodity Insights, reported a notable increase in LNG imports, benefiting from shifting global LNG cargoes and competitive pricing. India imported 10.54 million metric tonnes of LNG from January to May this year, up 25% from the same period in 2023. If LNG prices remain favorable, imports are expected to continue rising.
Balancing Growth and Decarbonization
Agamoni Ghosh, Managing Pricing Editor for Carbon Pricing, APAC at S&P Global Commodity Insights, discussed the need for India to balance economic growth with decarbonization. India’s energy transition policies aim to balance the need for decarbonization with energy affordability. Key mechanisms include establishing an emissions trading system, expanding renewable energy capacity, and promoting alternative fuels such as green hydrogen.
