Part I: True cost of coal-powered electricity – a closer look at the hidden damage

By: Syeda Masooma

The village of Rohero in Thar takes its name from a tree ‘Rohiro’ with foliage beloved by camels, and fruit cherished by the local Tharis. Against the backdrop of golden sand dunes of Thar desert, Rohiro’s vividly colourful flowers paint a canvas of nature not found anywhere else in the entire country. The tree, however, does not grow on dry sand dunes. It needs easy access to underground water. Aakash Hamirani, an educationist and activist based in Mithi, Tharparkar District, once told the magazine Earthwise that “this tree is rapidly disappearing from Thar.”

Then there is the Sangri tree. A famous tree known for its forage properties as well as solid wood, which yields quality timber. Its colourful flowers also attract camels, goats, and sheep.

Both of these trees, and so many others, are rapidly depleting from the area. Some due to unavailability if groundwater, some due to encroachments by those who go from outside Thar to exploit its resources – primarily coal.

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Coal has long been heralded as a cornerstone of industrial progress, fuelling the engines of economies around the world. In many countries, coal-fired power plants are seen as a reliable and relatively cheap source of electricity. However, this perception is based on a narrow understanding of cost—one that considers only the price of coal as a commodity. When we broaden our perspective to include the environmental, social, health, and economic damages associated with coal-powered electricity, it becomes evident that this energy source is far from affordable. The real cost of coal isn’t just measured in rupees or dollars; it’s reflected in the degradation of ecosystems, the suffering of communities, and the immense burden placed on future generations.

Our policymakers, however, remain detached from this reality, clinging to the narrative that coal is the ‘cheapest source of electricity.’ This argument seems to hold some weight when comparing developing countries to the developed world. The latter built their economies on this ‘cheap’ fuel, and now the developing and underdeveloped nations are being asked to halt their use to protect the planet. But there’s an important point to consider: the developing and underdeveloped countries stand to lose far more from environmental damage than the developed world.

The consequences of climate change—shifting weather patterns, melting ice caps, prolonged droughts, and heavy rainfall leading to flash floods—disproportionately affect certain regions, often in the developing world. Moreover, these countries lack the necessary data and coping mechanisms to effectively address these challenges. Wealthier nations, with their superior healthcare systems, can offer their citizens a fighting chance against the worsening climate. In contrast, poorer countries face greater losses, both in terms of human lives and infrastructure, as they are less equipped to handle the impacts of environmental degradation.

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Recently, Sindh Chief Minister Murad Ali Shah said that Thar coal is the only solution to the power crisis. Earlier, in 2021, he had said that the use of indigenous Thar Coal instead of imported coal for power generation has resulted in a saving of $78 million in foreign exchange. However, the only cost comparison he was making then, and he is making now, is the price of the coal itself. It is true that if the same amount of coal had been imported, it would have cost us $78 million more. But what about the cost that the extraction of this “cheaper, indigenous” coal inflicted on the people, economy, and the country.

A 2020 study by Center for Research on Energy and Clean Air (CREA) said that the Thar coal plants cluster “constitutes one of the largest air pollutant, mercury and CO2 emissions hotspots in South Asia”. Their estimates back then showed that the air pollutant emissions from the plants and mines would expose an estimated 100,000 people to exceedances of the World Health Organization (WHO) guideline for 24-hour average SO2 concentrations and 3,000 people to exceedances of the guidelines for 24-hour average PM2.5 concentrations.

In 2020, CREA estimated that these power plants and mines would be responsible for a projected 29,000 air pollution-related deaths over an operating life of 30 years. Other health impacts include 40,000 asthma emergency room visits, 19,900 new cases of asthma in children, 32,000 preterm births, 20 million days of work absence (sick leave) and 57,000 years lived with disability related to chronic obstructive pulmonary disease, diabetes and stroke.

The report further stated that these plants would emit an estimated 1,400 kg of mercury per year, of which one fifth would be deposited into land ecosystems in the region. Most of the deposition takes place onto cropland, increasing the mercury concentrations in crops. The levels of mercury deposition are potentially dangerous in an area with 100,000 inhabitants.

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Fast forward two years to 2022, and a research report by Policy Research Institute of Equitable Development (PRIED), called “Coal power and livelihood disruptions in Thar” found that “Following the land acquisition for coal power projects in block-1 and block-2 of Thar coalfield, more than 30,000 people have been facing displacement in 10 villages of Thar coalfield”. The report further adds, “Apart from their physical dislocation, the affected families have been suffering from huge livelihood losses. Since the local communities do not know any income generation skills other than farming and livestock rearing, an overwhelming majority of the displaced families have no source of earning their livelihood.”

Then there is the environmental degradation. PRIED’s report shows, “The companies operating coal mines and thermal power plants have been dumping the poisonous wastewater both at the designated sites (e.g. Gorano Reservoir, Dukar Cou Reservoir and Reinjection Plant at Meghay-Jo-Tar) and undesignated places (e.g. the farmlands and pastures of Jaman Sammu, Bitra, Warwai, Tilwaiyo villages).” Animals are dying after drinking poisonous wastewater released from coal mines and thermal power plants, the report said.

Water expert Dr Ismail Khumbar, in a documentary by PRIED and Earthwise, says, “In 1998, we launchd [a] study which surveyed 152 villages [in Tharparkar] to evaluate the social and economic situation of the local residents. We wanted to know what impacts will coal development have on their life, agriculture and environment…since the water has been diverted to Gorano reservoir, it has polluted local wells and cause serious water stress. The villages have suffered great loss of vegetation and trees, and environment”. He said “the [affected] people are still protesting the losses”.

ZiZak (Pvt) Ltd, a data research company, has gone a step further by estimating the external costs associated with coal-powered plants. Their 2023 study, titled “An Estimation of Socio-Environmental Externalities of Thar Coal”, is divided into two sections: the current methods of cost estimation and the externalities associated with coal-powered plants.

The first part deals with energy generation costs, investment on infrastructure and financing costs incurred by the investors, transmission costs incurred by central grid, distribution costs, consumer end costs based on type of connections/slabs of units used, periodic adjustment of costs related to fuel prices, government subsidies, and taxes etc. These are also the costs that, perhaps, Sindh chief minister considered while presenting Thar coal as the solution to Pakistan’s energy crisis.

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The second part of the report deals with costs that are not incurred by investors, distributors or the consumers, but nevertheless are borne by the society and the environment. For example, public health issues faced by population centres near the power plants/coal mines, GHG emissions, toxic pollution, degradation of water resources, etc. These costs are externalised to the society and environment rather than being borne by the investors, the power generators or the power consumers away from Thar. Such costs are reckoned as externalities.

ZiZak’s report highlights three critical areas of externalities associated with coal-powered plants: open-pit coal mining, the post-mining landscape, and coal-fired power generation, along with coal transportation and the decommissioning of power plants.

Open-pit mining is identified as the most destructive method, despite its higher resource recovery rate and lower cost for extracting shallow coal seams. However, this method significantly disrupts the landscape, both physically and metaphorically. The report explains that open-pit mining generates billions of tonnes of spoil piles, which often contain toxic materials that can contaminate the environment, leading to public health and environmental issues. It also lists various externalities of coal mining, such as forced displacements, inadequate resettlement plans, pollution of water resources, and loss of cultural heritage.

An activist and resident of Thar, Adarsh Kumar, spoke to HUM News Digital about the destructive impacts of coal mining in the region. He highlighted three critical issues occurring simultaneously. First, the water table is dropping at the mining sites, leading to water scarcity for the local population. Second, the discharge of toxic water into the Gorano reserve is devastating grazing lands and killing livestock. Finally, residents living near the plant are suffering from various health problems due to the environmental degradation.

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ZiZak’s research report concurs, the post-mining landscape is another area of concern. The report outlines the long-term impacts of mining, including unliveable and permanently degraded landscapes, inadequate land use planning, and the formation of toxic and saline lakes in abandoned mine pits. These externalities pose significant challenges for future generations, affecting everything from soil fertility to groundwater quality.

Heera Lal from Dukkaro village in Tharparkar said, “Earlier the water in the wells was our life. Now it has become death for us”.

Coal-fired power generation also presents numerous externalities, from greenhouse gas emissions and toxic air pollution to the impact on freshwater resources and the risks associated with coal slurry. It also causes forced displacements causing social unrest and inconvenience, becomes a source of unjust compensation for the landowners, incurs costs associated with inadequate resettlement plans, along with loss of local property values as well as cultural heritage.

These lists of costs associated with coal power plants are by no means extensive, but they do help encompass most of the negative impacts and associated costs that are currently not part of the final pricing of the electricity. This is the only reason why coal power plants are still considered an affordable, and even cheap, source of electricity production.

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The current regulatory process of estimation of tariff for coal-fired power plants In Pakistan, is done under NEPRA – the only regulatory authority. National Electric Power Regulatory Authority (NEPRA) sets the tariff for licensees of generation, transmission, distribution and the end consumers. But if even a fraction of the above-mentioned externalities were to be factored into the pricing, it would become apparent that coal-powered electricity, especially from Thar, is not the solution to Pakistan’s energy crisis — in fact it is deepening Pakistan’s environmental, economic, and social crises.

Speaking on whether the affectees have been compensated by the government, ZiZak CEO Dr Hassan Abbas said, “Thar coal projects are causing harms that no one can compensate for. It is not only harming the current generations, but also those who have not yet born. The environmental damage that these projects are causing, especially by toxic water’s disposal into the land, will never be reversed. The damage will continue to worsen for centuries. Thar coal project is causing inter-generational equity. For merely a few watts of electricity we are making the area unliveable for humans, animals, birds alike, for years to come”.