Banks around the world are increasingly deserting coal projects, from mining to power plants. And the case is no different in India. Coal is after all the most polluting fossil fuel and the biggest contributor to climate change.
India is currently constructing 34GW of new coal capacity on top of its existing fleet of 233GW. Notably, a recent study by independent climate change think tank E3G has found that since 2015, 326GW of proposed coal projects in India have seen cancellations, which means a 92% decrease in the pipeline.
The economics are also not favourable towards building new coal plants, which means India’s pre-construction pipeline of 21GW risks getting scrapped.
India’s renewable power tariffs are among the lowest in the world. It has seen a remarkable increase in the capacity addition of renewable energy generation led by solar and wind power.