As India moves towards renewable energy, its mining sector is likely to see a gradual shift from coal to other essential minerals required for production of renewable energy, the Reserve Bank of India (RBI) staff said in its monthly bulletin on May 22.
In COP26-Glasgow, a global climate summit, India made a commitment to meet 50 percent of its energy requirement with renewable energy by 2030 and to achieve net-zero emission by 2070.
The RBI staff, which included V. Dhanya, Gautam and Arjit Shivhare, published an article in this context, where it examined India’s future path to energy security and its impact on the mining sector. The article stated that India has made significant strides in renewable installed capacity and its share in total installed capacity is at 41.3 per cent (including large hydro) in March 2023. Investment in renewable energy has also more than doubled in 2021-22, it stated.
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The article also highlighted how mining plans of India is likely to change due to increased renewable energy capacities. "With the move towards clean energy, the mining sector is likely to see a gradual shift from coal to other essential minerals required for production of renewable energy," the RBI stated in its bulletin.
The article stated that India’s share in global reserve of critical minerals such as cobalt, nickel, and graphite are low. "Present clean energy technologies are mineral intensive, the supply of which is concentrated in a few countries. Global coordination and technological innovations for reducing mineral requirements in producing renewable energy would play a major role in achieving a cost-effective sustainable energy transition," it said.
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