India’s Coal Use To Rise For Next 25 Years Before Sharp Decline: NITI Aayog
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Last Updated: 10th February 2026 - 05:29 pm
Summary:
India’s coal consumption is projected to rise steadily for the next 25 years, peaking around mid-century, before falling sharply as cleaner energy adoption accelerates, according to a NITI Aayog report. Coal is expected to remain critical for power generation and grid stability in the near term, even as long-term decarbonisation goals reshape the energy mix.
India’s coal consumption could more than double by 2050 under current policy assumptions, according to long-term projections published by government think tank NITI Aayog.
Invest in Indian Markets and Unlock Future Potential With 5paisa!Demand is expected to peak at 2.62 billion metric tonnes in 2050, compared with about 1.26 billion tonnes currently, if no major additional decarbonisation measures are introduced.
Even beyond mid-century, coal use remains significant. Industrial demand is projected to keep coal consumption at around 1.80 billion tonnes by 2070 under the existing policy trajectory.
Net-Zero Path Implies Steep Reduction
India has committed to achieving net-zero emissions by 2070. Under this pathway, the report estimates that coal demand would peak at 1.83 billion tonnes in 2050, before falling sharply to about 161 million tonnes by 2070.
Residual coal use in 2070 would largely be confined to hard-to-abate sectors such as steel and cement. These applications would require carbon capture, utilisation and storage technologies to align with emissions targets.
Power Generation Still Coal-Heavy
India, the world’s second-largest coal consumer after China, currently relies on coal for nearly three-quarters of its electricity generation. To meet rising power demand, coal-fired capacity is expected to increase to 307 GW by 2034–35 from about 212 GW at present.
The report notes that coal will remain essential in the near term to support grid stability as renewable capacity expands.
Clean Energy Transition Needs Support Systems
To reduce dependence on coal, NITI Aayog said India will need large-scale battery storage, expansion of nuclear power, stronger grid infrastructure and continued reductions in clean energy costs. While coal plants may continue operating, many are expected to run less frequently and primarily serve peak demand or emergency needs over time.
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