Aiming for net zero carbon by promoting renewables

Clean energy projects of around 4.5 gigawatts at a cost of about $3 billion will be set up by India’s Coal India. The organization has been diversifying beyond the polluting fuel, which is still key for the country’s power needs, as a part of the wider national aim to achieve net zero carbon emissions by 2070, according to a Reuters report. Coal India is, therefore, scaling clean energy alongside India’s 80 GW coal capacity expansion, amid growing power demand.

As the Indian Ministry of Coal’s website report states, in order minimize the carbon footprints of mining and to progress towards the goal of net zero carbon emission, coal/lignite companies are keen on promoting renewables. Coal companies are going for both roof top solar and ground mounted solar projects. It has also been envisaged to develop solar parks in some of the reclaimed mining areas. By late 2023, coal/lignite PSUs had installed solar capacity of about 1656 MW and windmills of 51 MW. India has plans to install 5570 MW of renewable capacity by 2030. Coal India, a fossil fuel producer has aligned itself and is committed to become a net zero energy company and is in the process of implementing 3 GW solar power program by 2025-26. A total of 398.8 MW capacity was aimed at in FY2024, 1443 MW in FY2025 and 1158 MW in FY2026.

This supply of 4.5 GW of renewables for green ammonia production is part of a non-binding memorandum of understanding (MoU) to supply 4.5 GW of wind and solar power to Indian green molecules producer AM Green for the production of green hydrogen and ammonia. The clean power would be built across India by the state-owned coal giant and delivered in phases over many years, with AM Green integrating the renewable energy with pumped hydro storage to enable round-the-clock green energy. If the deal goes ahead, it would be one of the world’s largest renewable energy contracts ever signed – and certainly the biggest supply deal yet for green hydrogen and ammonia production.

As ESG News report states that the announcement comes at a time of rapid industrialization and increased power demand in India, driven in part by climate change. Despite aggressive targets, the renewable energy sector continues to face challenges – ranging from land acquisition issues to weak demand in project tenders. India’s broader energy roadmap includes expanding coal-fired capacity by 80 GW by 2031–32 from the current 222 GW, while simultaneously aiming to add at least 500 GW of renewable capacity by 2030.

An earlier ESG report had pointed out that India is taking a bold step to boost local manufacturing in its clean energy sector. Starting June 2026, all solar photovoltaic (PV) modules used in clean energy projects must be built using locally-made cells, according to a new directive from the renewable energy ministry. The installed capacity of solar cells in the country is expected to increase substantially next year, as per the ministry. This move builds on existing rules requiring locally-made modules for government projects and aims to reduce the country’s reliance on imports. With this policy, India aims to transition to a more self-reliant solar manufacturing ecosystem. While India’s module-making capacity stands at 80 GW, cell manufacturing capacity lags at just over 7 GW. India added 13.3 GW of solar equipment manufacturing capacity in the first half of 2024 alone. Quoting a report by consulting firm Mercom, the ESG analysis says that India projects that solar panel production will reach 95 GW by 2025. “India’s solar equipment manufacturing space has made rapid strides,” the Mercom India report has highlighted, reflecting the sector’s growing potential. This mandate aligns with India’s ambitious plan to expand its non-fossil fuel capacity to 500 GW by 2030, up from the current 156 GW. The policy not only strengthens local manufacturing but also supports the nation’s transition to a sustainable energy future. By enforcing the use of locally-made solar cells, India is positioning itself as a leader in clean energy manufacturing while reducing dependency on imports. This policy will also likely reshape the country’s renewable energy landscape, driving innovation and growth in the sector, says the ESG report.