Coal will remain as the dominant power generating fuel in the next 10 years despite the rising popularity of renewable sources—solar, wind, hydro and nuclear, according to a study by an international think tank.
Despite usage of renewable sources to grow, the share of coal in power generating mix will remain at around 70%, the current share.
The think tank reasoned that ample domestic supply and cheap cost will render coal as the most preferred feedstock for power generation. India is also expected to surpass the US as the second largest producer of coal by 2020. Coal is also projected to increase its market share in India from 9.8% to 12.7% by 2020.
Coal imports will remain important to the country due to delays in opening up of commercial mining to private players and slow approvals for new state mines.
Global Thermal Coal prices are also expected to settle down in 2017 at USD 60-70/MT, the think tank said.
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