Renewable energy poses threat to coal’s future: CIL

KOLKATA: Renewable energy will start replacing coal-fired power as solar tariffs are poised to fall below Rs 2 per unit in seven years and storage costs fall, while cheaper international supply can lead to imports of 20 million tonnes, posing a big challenge to domestic suppliers, a document issued by Coal India says.

The competitiveness of domestic supplies will be a challenge as costs such as wages rise, according to the document prepared with the help of a consultant hired by the monopoly to assess the future of coal in the era of plunging renewable energy costs and rising concerns about polluting fossil fuels such as coal.

The report, on which Coal India is seeking public comments, says that unless costly mines are retired and prices of coal corrected downwards, domestic supply may remain stagnant or even fall.

Coal India Ltd