Nearly 40% of coal power plants face critically low fuel stocks

Nearly 40% of India's coal-fired power plants are struggling with critically low fuel stocks, according to government data released on Monday. The number of plants with coal stocks below 25% of the required inventory or capable of generating power for less than three days surged to 74 as of September 19, up from around 60 plants the previous week.

These figures were updated daily by the Central Electricity Authority. India's peak power demand, which measures the maximum electricity requirement, has been fluctuating between 230 gigawatts and 250 gigawatts in the past week. The peak demand reached an all-time high of 270.70 gigawatts in May. The decline in power plant coal stocks seems to be a temporary logistical issue rather than a sign of structural supply constraints, according to analysts from Crisil.

The government of India's coal and railway ministries increased supplies to the plants after erratic monsoon rains disrupted shipments. Despite a 21% rise in renewable power generation between April and August, coal-fired power remained essential in meeting the continuous demand due to its round-the-clock availability. In August, Indian power producers' coal imports reached a 15-month high as a heatwave drove up electricity demand, while hydroelectric power generation remained low, leading utilities to turn to expensive overseas supplies, as reported by Reuters.