THe Blog

April 01, 2015

Coal as a Dominant Energy Source

Courtesy: Financial Times

James Crabtree in this FT article stresses upon the need for India to increase coal supply in order to keep up with its energy demands. He mentions that:

 

"domestic supplies of coal, its dominant energy source, are barely increasing and India faces a future dogged by power cuts and reliant on expensive fuel imports. India will overtake the US to become the world’s second-largest coal consumer by 2025, going on to replace China as the dominant source of new global coal demand shortly afterwards. But without more coal, Mr Modi’s hopes of propelling his country towards economic superpower status are in jeopardy."

Mr Modi’s progress will have significant implications for global energy markets. Global resource companies such as Rio Tinto and BHP Billiton hope India will open up its state-dominated mining sector and pick up some of the slack as China attempts to wean itself off coal amid a wider fight against pollution. But it is even more important for India, where a gradual economic recovery under Mr Modi is set to see the country overtake China next year to become the world’s fastest-growing major economy — but only if it can find sufficient energy to sustain its growth".

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