February 13, 2016 12:00AM
Piyush Goyal is a name you haven’t heard. But this week he has made one of the most important interventions of any foreign politician in an Australian political debate.
He is India’s Minister for Power, Coal and Renewable Energy. He is a big success politically and in line for more promotion.
I’ll give you his direct quotes in a moment. But let’s cut to the chase. Here are the important things he said in a lengthy interview with The Australian.
India will increase coal imports from Australia. Quite independently from that, if the Adani mine in Queensland goes ahead it is an integrated project and will be its own main customer, so India’s efforts to increase its coal production would not reduce the viability of the Adani project.
India is passionately committed to caring for the environment but also to economic development. That means a huge increase in coal-fired power stations as well as coal’s role in making steel.
The Indian government wants 24/7 reliable energy for all its people. Some 300 million Indians will move from rural to urban living in the next couple of decades. They will be on proper power grids. India’s baseload power will be provided by coal.
India will expand its renewable energy sector but, as the minister says, renewables have never provided baseload power for anyone.
India also will expand nuclear power and keep its gas power stations at roughly their current level.
The massive urbanisation in India means a surging demand for steel. Goyal says coking coal exports from Australia will increase particularly strongly. (Thermal coal goes to power stations, coking coal makes steel). Already nearly a third of India’s coal imports are coking coal.
Goyal’s remarks could not be more clear. Every Greens spokesman and climate-change jihadist who argues on the ABC that India is turning away from coal is inverting reality. Far from coal being a “dying industry”, as Geoff Cousins argued in a ludicrous article, the International Energy Agency forecasts Indian coal imports more than doubling by 2040.
Goyal does want to crank up India’s domestic production of coal but its coastal power stations are geared to take imported coal and that will continue, he tells me.
Now, dear reader, if you ever again hear anyone on the ABC claim that India is moving away from coal, or that Australian coal is not essential to get hundreds of millions of Indians out of poverty, you will know they are talking pure moonshine.