India Could Earn Over $170 Billion by Closing Its Coal Power Plants Early Published By Anupam Nath India, one of the world’s largest coal consumers, may be sitting on a golden opportunity—not in coal, but in quitting it. A groundbreaking analysis published in Nature Communications suggests that India could gain over $170 billion if it decides to retire its coal-fired power plants earlier than planned.Currently, coal powers about 70% of India’s electricity grid. While this has fueled decades of growth, it has also come at a heavy cost: polluted air, climate damage, and thousands of premature deaths every year. The new study by researcher Xinyi Long and her team at Fudan University proposes a transformative alternative—one that balances economics, environment, and public health.Their model examined every coal-fired power plant in India, from massive coastal facilities to smaller inland units, calculating the financial and social outcomes of different shutdown timelines. Two main warming scenarios were tested—limiting global temperature rise to 1.5°C and 2°C. Astonishingly, both scenarios indicated strong net economic benefits for India if closures happen sooner rather than later.The researchers used a mixed-integer optimization model, a mathematical approach that identifies the least costly combination of power plant retirements. It considered construction and operating costs, revenue potential, age, and efficiency—while also integrating the social cost of carbon and the health benefits of cleaner air.For instance, the state of Chhattisgarh, one of India’s coal-rich regions, could gain about $171 billion in net benefits, while Uttar Pradesh could earn around $110 billion. Instead of causing economic losses, early closure emerges as a pathway to prosperity—especially when renewable energy and transmission infrastructure are strategically expanded.The environmental and health dividends are just as compelling. Coal plants contribute to an estimated 112,000 deaths each year due to air pollution–related illnesses. Reduced emissions mean fewer hospital visits, cleaner skies, and healthier communities. The findings clearly show that climate action doesn’t have to be a sacrifice—it can be a smart investment in India’s future.Still, challenges remain. Transitioning away from coal will require plans to support affected workers and regions dependent on coal mining and royalties. With the right policies, however, the shift could create new green jobs, attract clean technology investments, and cement India’s position as a global leader in sustainable growth.Ultimately, the message of this research is powerful: India’s coal exit could be its biggest economic win of the century. Faster action doesn’t just save the planet—it can make the country richer, healthier, and more resilient for generations to come.
