The implimenting global energy crisis after the covid-19 pandemic

Abstract

The report analyzes the coal crisis that occurred immediately post the pandemic in India. India is among the world’s largest consumers and producers of coal. More than 40% of the energy consumed in India is coal-based and the domestically produced coal meets around 70% of the demand while the rest is generally imported. In 2020, coal reserves fell to very low levels, with some plants having less than 3-4 days of reserves, which is especially critical in a country as heavily reliant on coal for energy and power as India. To analyze this acute shortage of coal, the report studies the trends in demand, production, and import of coal in the country, along with other factors like climate change. lt was found that there was a sudden spike in demand after the pandemic as the economy restarted, particularly from the electricity sector which is among the biggest consumers of coal, along with infrastructure and construction projects. Due to high demand for coal worldwide, prices of imports had risen sharply and that, coupled with India’s lockdown policies, had led to very low imports of coal. Therefore, although production was ramped up, domestic sources were unable to meet the demand. The government has introduced policies to reduce its reliance on imported coal and analysts have observed that exploring alternate sources of energy could further insulate the country from such shocks.