45 Power Plants in India Running on Critically Low Levels of Coal Stocks
As many as 45 coal-fired power plants in India are currently operating with critically low levels of coal stocks, as electricity demand rises amid the strong El Nino but supply is disrupted by monsoon rains, Reuters reported on Thursday, citing government data and industry officials. These 45 coal power plants are operating with inventories below 25% of their required levels or with stocks…
Forty-five coal-fired power plants in India are currently running on critically low levels of coal reserves, according to Reuters, citing government data and industry officials. This increase in low coal stocks is attributed to a combination of rising electricity demand during a strong El Nino season and disruptions in supply caused by monsoon rains, which have hampered the transportation of coal from producing states to power plants.
The Central Electricity Authority reported a surge in the number of affected plants, from 31 at the end of July to 45 as of now, with their inventories falling below 25% of required levels or unable to sustain three consecutive days of power generation. The situation has led to a sharp rise in domestic coal prices, with coal consumption outpacing supplies at Indian power plants, according to a separate analysis by commodity consultancy BigMint.
As a result, there is a growing need for more coal deliveries, but many plants are receiving only a fraction of the required amount. The monsoon season has been disrupted by El Nino's hotter-than-usual temperatures, driving up power demand, particularly for air-conditioning. This increased demand for cooling is further exacerbating the reliance on thermal coal plants, with some plants being asked by the power ministry to postpone planned maintenance until coal supply issues are resolved.
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