India’s coal demand expected to jump 4.2%, record output ahead: IEA
The International Energy Agency projects India's coal demand will rise by 4.2% by 2026, driven by industrial growth and power requirements. Despite this, the government aims to reach record domestic production levels to reduce reliance on imports.
Why it matters
India's continued reliance on coal highlights the tension between rapid industrial development and global climate transition goals.
Coal demand in India is expected to increase by 4.2% year-over-year to 1,353 million tonnes (MT) in 2026 with production expected to scale yet another record at 1,095 MT, the International Energy Agency (IEA) said in its mid-year report Thursday.
The IEA attributed this to government’s objective of addressing elevated domestic and industrial demand by focussing efforts on bolstering domestic supply, reducing import dependence and utilising already-elevated stocks at mine pitheads.
In contrast, the Paris-headquartered inter-governmental organisation sees global coal demand to increase 1.2% to 8.94 billion tonnes (BT) during the same period although production may slide downwards 2% but remaining about 9 BT.
IEA attributes projections about elevated coal demand in India to enhanced requirement for power – notwithstanding the spike in renewable sources-based power capacities – alongside El Niño conditions which are expected to spur cooling requirements amid lower hydropower availability.
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