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Why India prefers coal to gas
Mar 06: Under current policies, existing coal, nuclear and hydro plants may provide more economic, and for many nations, more secure alternatives to natural gas for baseload power. While in
Europe and the US, the levelised cost of generating power from new CCGT is now cheaper than from new coal-fired units, the competitiveness of new gas-fired and coal-fired plants is
skewed towards coal in emerging economies that rely on imports for gas supplies.
8Absent a carbon price and more stringent regulations on air pollution and carbon emissions, natural gas has struggled to take share from cheap coal in these regions. In developing regions
that rely heavily on LNG imports, governments must balance environmental sustainability with income and energy equity.
8In India for example, this has led to a delay in expanding natural gas infrastructure and continued growth in coal generation.
8The Indian government has openly stated its views on coal as the current best option to deliver the energy needed to improve the standard of living for millions of people.
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