4 days ago
India's Coal Stocks Fall 66%; Rebuilding Before Summer Worries Officials
Coal supplies at India's power plants have become much smaller since April.
Officials say the drop is unusually large compared with recent years.
They are concerned about having enough coal stored before next summer, not only about this year's supply.
Cooler weather and lower electricity demand may help plants save coal and rebuild their stocks.
Officials expect October and November to be important months for restocking.
More coal production and better train availability could also help deliver fuel.
The government has asked some captive coal plants to run at full capacity through the end of December.
Officials are discussing whether plants should mix imported coal with domestic coal, but no decision has been made.
Battery storage is also being considered to help meet evening electricity demand.
Coal stocks at domestic coal-based power plants fell from about 54.9 million tonnes in early April to 18.6 million tonnes at September's end.
The 66% decline is the steepest in three years; stocks fell about 23% over the same period last year.
Officials say easing electricity demand as summer heat recedes could give power plants time to rebuild stocks by March.
Coal India Limited reported September production up 9.18% year on year and power-sector supplies up 10.63%, to 48.90 million tonnes.
The government has directed about 112 captive coal plants to run at maximum capacity through December 31; imported-coal blending remains under discussion, with no decision announced.
- Who
- Domestic coal-based power plants and officials overseeing India's power system.
- What
- Coal inventories at power plants fell 66%, prompting concern about rebuilding stocks before next summer.
- Where
- India.
- When
- Stocks declined from the beginning of April to the end of September; officials are focused on rebuilding them by March.
- Why
- Officials say stocks must be rebuilt ahead of next summer's electricity demand; rainfall deficits have also limited hydropower and increased pressure on thermal plants.
Key facts
- Coal stocks, early April
- About 54.9 million tonnes
- Coal stocks, end of September
- 18.6 million tonnes
- Stock decline
- About 66%, the steepest decline in the past three years
- Comparison with last year
- Stocks declined about 23% over the same period, from 55.2 million tonnes to 42.6 million tonnes
- Coal India September production
- Up 9.18% year on year
- Coal India supplies to power sector
- 48.90 million tonnes in September, up 10.63% from 44.20 million tonnes
- Captive plants directed to run at maximum capacity
- About 112, from October 1 to December 31
- Planned battery storage capacity
- Five to six major renewable energy companies are planning around 10 GW by March
Quotes
Senior official involved in power system operations
Official involved in power system operations.
“The concern is not for this year but for next year. This year things will be neck-to-neck as there is a lot of pressure on thermal power plants in the absence of hydro-power due to rainfall deficit. The main concern is rebuilding the stock by March before the onset of next summer.”
indianexpress.com
“This will be very beneficial for the system, especially during the evening and night hours when there is greater stress on the grid.”
indianexpress.com
Sources
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