NEW DELHI : Coal’s use for power in India is set to shrink for the first time in at least 14 years as demand slows and cheaper and cleaner renewable sources of electricity erode the fossil fuel’s share.
Coal generation fell for a fourth month in November, the longest such streak in government data going back to 2005. That echoes a decline in consumption because of slowing industrial activity and prolonged rains that pushed up production from hydroelectric dams while curbing electricity demand for air conditioning and irrigation.
When demand is down, utilities end up reducing offtake from costlier coal plants, and buy more from other sources such as hydro, renewables and nuclear, said Sambitosh Mohapatra, partner for power and utilities at PricewaterhouseCoopers India.
