INDIA'S GREEN TRANSITION: COST-BENEFIT ANALYSIS OF RENEWABLE ENERGY EXPANSION VS. COAL DEPENDENCY

The energy sector in India stands at a very dismal crossroad, between the requirements of the long-term economic development and the need to ensure environmental care. The study will conduct an advanced cost-benefit analysis comparing the power policies focused on coal to a faster implementation of renewable technology with a distinct focus on the economic, environmental, and social aspects. The analysis shows that, despite the long-standing use of coal as the leading electricity source, renewable power plants have, in some cases, surpassed the new coal ones, indicating a structural change in the generation mix (IEEFA, 2024). The solar and wind technologies have the advantage of falling prices that are precipitously declining and favorable policy frameworks, and thus they are able to attain capacities and price points that compete and, in most cases, even exceed those of coal. However, coal is not to be disregarded to sustain a consistent base of production due to current limitations in infrastructure and grid integration issues (Economic Times, 2024). Renewable growth is financially beneficial in the long term due to the low fuel costs and less dependence on fluctuating fossil fuel market prices, whereas coal has several major hidden expenses in terms of environmental damage and health hazards. Environmental externalities are included in the study showing that renewable adoption significantly reduces emissions and enhances the quality of the air in compliance with the sustainable development goals. Overall, the results support a balanced approach that focuses on renewable growth but secures a fair transition of the coal-reliant areas by providing a consistent income in grid development, storage options, and employee retraining. The study highlights the need to have measured policy tools to maximize economic performance, protect environmental integrity, and enhance fair social performance along the green transition path in India.