India's Climate Commitments
India’s updated Nationally Determined Contribution (NDC) under the Paris Agreement commits to adopting a climate-friendly development path.
India aims to reduce emissions intensity of GDP by 45% by 2030 from 2005 levels.
The goal is 50% electricity capacity from non-fossil fuel sources by 2030.
Thermal power will still contribute 50% of the total electricity generation, maintaining its significant role.
Thermal Power and Emissions
Thermal power plants contribute significantly to carbon emissions, with coal being the primary energy source (59.12% of total energy supply).
States producing thermal power bear the environmental burden, while consuming states enjoy cleaner electricity.
Data shows that coal-rich states like Jharkhand, Chhattisgarh, and Odisha generate large amounts of thermal power but face lower per capita electricity consumption.
Electricity Generation and Consumption
Maharashtra, Uttar Pradesh, and Gujarat lead in non-renewable electricity capacity, while Rajasthan has the highest renewable capacity.
Despite being top producers, states like Uttar Pradesh, Odisha, and Chhattisgarh consume less electricity, while states like Gujarat and Maharashtra import more power.
States like Bihar and Chhattisgarh are major exporters of electricity, while Gujarat is the largest importer.
Need for Compensation
Power-producing states face pollution burdens without receiving compensation for the environmental costs.
Current tax structures don’t provide compensation for thermal power-producing states; they don’t benefit from electricity consumption taxes.
Proposed solutions include levying taxes on thermal power generation in producing states or compensating through the Finance Commission's funding mechanisms.
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