Nearly 40% of India's coal power plants running critically low on fuel, data show

NEW DELHI: Nearly 40% of India’s coal-fired power plants are operating with critically low fuel stocks due to a surge in power demand amid hotter-than-usual weather linked to El Niño, government data showed on Monday.

The number of power plants with critically low coal stocks of less than 25% of the required inventory or only able to generate power for less than three days rose sharply to 74 as of September 19 from about 60 plants last week, data from the Central Electricity Authority that is updated daily showed.

India’s peak power demand, a measure of the maximum electricity requirement, has been hovering between 230 gigawatts and 250 gigawatts in the past week.

Peak power demand hit an all-time high of 270.70 gigawatts in May.

The decline in power plant stocks appears to be a temporary logistical issue rather than a sign of any structural supply constraints, Crisil analysts said.

India’s coal and railway ministries said in early September they were increasing supplies to the plants after erratic monsoon rains had impacted shipments.

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Renewable power generation rose about 21% between April and August, but due to the intermittent nature of clean energy, coal-fired power continued to play a critical role in meeting round-the-clock demand, Crisil said.

Meanwhile, Indian power producers’ coal imports in August rose to a 15-month high as a heatwave boosted electricity demand while hydroelectric power generation remained subdued, prompting utilities to turn to costly overseas supplies, Reuters reported last week.