India's Energy Transition: Stranded coal power assets, workers and energy subsidies

This briefing by the International Institute for Sustainable Development (IISD) examines the drivers of stressed coal power assets in India and advocates for a 'just transition' that prioritizes workers and communities over the protection of stranded assets.

• India experienced a crisis of stressed coal power assets in 2018, with approximately 18 per cent of installed capacity identified as "stressed" and facing potential bankruptcy proceedings.
• The current drivers of stressed coal assets are coal shortages and the financial distress of energy distribution companies (DISCOMs). Future drivers are expected to include air pollution regulations, water scarcity, and the cost-competitiveness of renewable energy.
• Government policy support mechanisms, such as public finance via preferential loan rates, subsidies, and the failure to enforce air pollution regulations, artificially mask market signals that would otherwise increase coal power costs.
• To prevent the burden of asset stranding from falling on communities and workers, policy-makers should implement complementary measures such as financing mechanisms, targeted social protection, and general employment schemes.
• A study by the IISD found that while subsidies for electric vehicles and renewable energy in India more than doubled in FY 2022, the government still allocated four times more support to fossil fuels than to clean energy.

APA

Roberts,, C. B. V. W. (2019). India's Energy Transition: Stranded coal power assets, workers and energy subsidies. International Institute for Sustainable Development. https://www.iisd.org/publications/brief/indias-energy-transition-stranded-coal-power-assets-workers-and-energy-subsidies

Chicago

Roberts,, Christopher Beaton,Balasubramanian Viswanathan,Leah Worrall,Leo. India's Energy Transition: Stranded coal power assets, workers and energy subsidies. International Institute for Sustainable Development, 2019. https://www.iisd.org/publications/brief/indias-energy-transition-stranded-coal-power-assets-workers-and-energy-subsidies.

Wikipedia

{{cite report |last1=Roberts, |first1=Christopher Beaton,Balasubramanian Viswanathan,Leah Worrall,Leo |title=India's Energy Transition: Stranded coal power assets, workers and energy subsidies |publisher=International Institute for Sustainable Development |date=2 April 2019 |url=https://www.iisd.org/publications/brief/indias-energy-transition-stranded-coal-power-assets-workers-and-energy-subsidies |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{roberts2019indias, author = {Roberts,, Christopher Beaton,Balasubramanian Viswanathan,Leah Worrall,Leo}, title = {{India's Energy Transition: Stranded coal power assets, workers and energy subsidies}}, institution = {International Institute for Sustainable Development}, year = {2019}, month = apr, url = {https://www.iisd.org/publications/brief/indias-energy-transition-stranded-coal-power-assets-workers-and-energy-subsidies}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }