CHENNAI: The transformative push for electric vehicles (EVs) is likely to be positive for ‘coal-based energy generation and help generate fresh demand for electricity, the lack of which is weighing down the entire power sector.
“It is estimated that EVs could emerge as a key segment in the overall automobile sector. Assuming a market share of 15 per cent by 2030, EVs can result in incremental power demand of nearly 160 billion units by 2030,” according Coal Vision 2030. The report has been commissioned by Coal India Limited (CIL) to assess the future demand scenarios for the coal sector up to 2030.
Currently, EV segment is at a nascent stage with just over 4 lakh electric two-wheelers and a few thousand electric cars on the roads. “However, EVs have the potential to grow to more than five per cent (of annual vehicle sales) in a few years,” it added.
Meanwhile, the vision report also noted that coal, as a primary source of energy, will continue for some more time in India and its demand in the non-regulated sector is expected to be higher than the regulated sector like power. The report pegs coal demand at 900-1,000 mtpa by 2020, an estimate that might not be favourable for the mining behemoth’s ambitious production targets.
The state-run miner aims to produce 1,000 million ton per annum of coal by fiscal 2020. It was not immediately known whether Coal India will consider revising its production target downward, based on the vision document.
By 2030, of the overall coal demand, thermal coal demand is estimated to be 1,150-1,750 mtpa and the balance is coking coal demand.
2020 coal demand
The report pegs coal demand at 900-1,000 mtpa by 2020, an estimate that might not be favourable for the mining behemoth’s ambitious production targets