Date: 21/10/2022
Relevance: GS-3: Energy, Environmental Pollution, and Degradation
Key Phrases: Coal, Ukraine-Russia War, COVID-19, Commodity market, Carbon Content, Hard coal, Soft coal, Climate Change, COP21 Paris Summit, Thermal Energy, Methane, Greenhouse Gasses, Energy security, Development Imperative.
Why in News?
- Recently, the prices of natural gas, crude oil, and coal have all hit new highs in the international market due to disruption because of the Ukraine-Russia War, rising demand after COVID-19, and bad weather.
Key Highlights:
- Coal prices breached the $200 per short tonne mark in the USA.
- China is going to add 300 million tonnes of coal mining capacity.
- European coal imports have surged more than 35per percent this year.
- At the IMF-World Bank meeting, the Finance Minister of India indicated the necessity to go back to coal.
Coal Sector at a glance
- Coal is the largest single source of energy-related CO2 emissions.
- China and India together consume double the amount of coal as the rest of the world combined.
- In India, the Coal sector was nationalized in 1972 in two phases.
- Coal blocks are allocated on the basis of the auction.
- Bituminous type of coal is mostly found in India.
- It is mainly found in the provinces of Jharkhand, Orissa, West Bengal, Chhattisgarh, and Madhya Pradesh.
Clean Energy
- About
- Clean energy is energy that comes from renewable, zero-emission sources that do not pollute the atmosphere when used. For example, Solar Energy, Wind Energy, Nuclear Energy, etc.
- India has overachieved its commitment made at COP 21- Paris Summit by already meeting 40% of its power capacity from non-fossil fuels- almost nine years ahead of its commitment.
- Why is it Important?
- These are environmentally friendly since there is no negative impact on the environment by the use of clean energy.
- Clean energy reduces the risk of environmental disasters, such as fuel spills, etc.
- It helps to create reliable power supplies to enhance energy security.
Recent Trends
- At Global Level:
- China
- China, the world’s biggest coal-based power generator, has a deep economic interest in thermal energy, particularly coal-based plants.
- It is also the biggest producer and exporter of thermal power plant equipment.
- Chinese banks have financed about 70 percent of the new coal-based plants globally.
- European Countries:
- Most EU nations have reopened mothballed coal-based power plants and ramped up output.
- It is forecasted that Germany will become the world’s third-biggest importer of coal after China and India.
- China
- In India:
- Because of intermittency issues with solar and wind power, India’s large renewable capacity addition will not be matched by the consumption of renewable-based power.
- India plans to increase its coal-based power generating capacity by 25 percent by 2030.
- Increasing energy consumption is a development imperative for
India because-
- Increased energy consumption is not only a prerequisite for overall growth but also human development.
- India has a low per capita energy consumption ( India ranks 104 out of 140 countries).
Coal
- About
- Coal is a sedimentary deposit composed predominantly of carbon that is readily combustible.
- It is formed from plant remains that have been compacted, hardened, chemically altered, and metamorphosed by heat and pressure over geologic time.
- Coal is the most widely available and cheapest energy source
- Types of Coal
- Anthracite:
- It is also known as “hard coal”.
- It contains the highest amount of carbon out of all coal ranks (86%-97%).
- It is used mostly in industrial settings and the metals industry due to its high heat value.
- Bituminous:
- It is also called “soft coal”.
- It has a slightly lower carbon content than anthracite (45%-86%).
- It is used for both electricity and steel production.
- Subbituminous:
- It has lower carbon content than bituminous coal (35%-45%).
- It is primarily used for electricity generation
- Lignite:
- It is known as “brown coal”.
- It has the lowest carbon content out of all the coal ranks (25%-35%).
- It has high moisture content and a crumbly texture.
- It is mainly used in electricity generation
- Anthracite:
- Coal Consumption by Country:
- China
- China is the largest consumer of coal, and has comprised more than half of global consumption since 2011, with this share growing year upon year.
- India
- India Consumes about 11% of coal globally.
- Coal is the most important and abundant fossil fuel in India.
- It accounts for 55% of the country's energy needs.
- The United States
- In 2021, about 546 million short tons (MMst) of coal were consumed in the United States mainly in the power generation sector.
- China
Reasons behind the Coal Price Surge:
There are many factors that cumulatively impact the price of coal in the commodity market. Some of them are below-
- Russia-Ukraine War:
- Europe relies heavily on Russia for imports of natural gas and coal.
- In response to the war, the European Union imposed a ban on imports of Russian coal starting in August 2022.
- Demand rebounds as the global economy recovers:
- Demand for natural gas and coal has rebounded as the global economy recovers from the pandemic, both for electricity generation and industrial use.
- Adverse weather events limit supplies:
- Weather events have had substantial effects on energy production.
- For example, Drought reduced hydroelectric power generation in Brazil, China, Turkey, and the United States, which contributed to higher fossil fuel demand.
Way Forward:
- Big energy consumers are taking care of requirements first, and worrying about the planet later. This approach of the countries needs to be rationalized to achieve the commitment made under Paris Agreements.
- There is a need for urgent attention to work towards achieving a clean energy-oriented economy.
- The deployment of carbon capture, utilization, and storage (CCUS) technologies needs to be prioritized.
Conclusion:
- The future of clean energy looks bright, with recent years showing that more renewable energy capacity has been installed globally than new fossil fuel and nuclear capacity combined.
Source: The Hindu BL
Mains Question:
Q.Why has the coal price skyrocketed in recent times? What
does it mean for net zero? Suggest the measures that balance the situation
towards a clean energy-based economy.
(150 Words).
