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Nearly 40% of Indian Power Plants Face Coal Shortages
Many power plants in India do not have enough coal stored.
On September 19, 74 plants had critically low supplies.
Some had enough coal to run for fewer than three days.
People have been using more electricity because the weather has been unusually hot.
Rainy-season problems also made it harder to move coal by rail.
Solar and other renewable power increased, but these sources do not always produce electricity all day.
Coal plants are still needed to provide steady power.
Analysts said the shortage may mainly be a temporary transportation problem, while power companies are also importing more coal.
The number of Indian power plants with critically low coal stocks rose to 74 by September 19.
These plants had less than 25% of required inventory or fewer than three days of generation capacity.
India’s peak power demand remained between 230 and 250 gigawatts during the past week.
Hotter-than-usual weather, linked to El Niño, increased electricity demand while monsoon disruption affected coal shipments.
Coal imports reached a 15-month high in August as utilities relied on costly overseas supplies.
- Who
- Indian coal-fired power plants, power producers, the coal and railway ministries, and CRISIL analysts.
- What
- Coal stocks at 74 Indian power plants fell to critically low levels amid high electricity demand and disrupted shipments.
- Where
- India, with the report datelined New Delhi.
- When
- The data was reported on September 19; demand had remained elevated during the preceding week, and imports rose in August.
- Why
- Hot weather increased power demand, while erratic monsoon rains affected coal shipments and subdued hydroelectric generation.
Temporary Logistics Problem
Immediate Supply Risk
Meaning of the low stocks
Temporary Logistics Problem
CRISIL analysts said the decline appeared to be a temporary logistical issue rather than evidence of structural supply constraints.
Immediate Supply Risk
The Central Electricity Authority data showed that 74 plants had critically low stocks, up from about 60 the previous week, creating an immediate fuel-supply concern.
Role of imports
Temporary Logistics Problem
Higher imports can help utilities manage the disruption while domestic supplies and shipments are increased.
Immediate Supply Risk
Power producers turned to costly overseas coal as demand rose and hydroelectric generation remained subdued, increasing supply costs.
Key facts
- Plants with critical shortages
- 74 as of September 19
- Critical stock threshold
- Less than 25% of required inventory or fewer than three days of generation capacity
- Recent peak demand
- Between 230 and 250 gigawatts during the past week
- Record peak demand
- 270.70 gigawatts in May
- Renewable generation growth
- About 21% between April and August
- Coal imports
- Reached a 15-month high in August
- Government response
- Coal and railway ministries said they were increasing supplies to power plants
Sources
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