India’s coal stocks at power plants slide 24% amid unusual demand surge

India's coal supplies at domestic power plants have decreased by 24% compared to the beginning of September, as demand for electricity surged unexpectedly. The decline in coal stocks correlates with less hydropower generation due to drought conditions and weather changes caused by El Niño. Peak power demand reached 269 gigawatts (GW) on September 10, the highest for September and just 1 GW shy of the year's peak in May.

As of September 27, coal stocks at domestic plants stood at 19.2 million tonnes (mt), with 64% below the required level of 53.7 mt. Over half of the 168 domestic coal-based power plants were at critical fuel-stock levels, with their coal stock below 25% of the normative stock. The central government invoked emergency measures under Section 11 of the Electricity Act to increase coal-based generation, asking around 112 captive coal-fired plants to operate at maximum capacity from October 1 to December 31.

This year, coal-based generation has risen by 15.5% to 96,718.83 million units (MU) compared to the previous year's same period, while hydropower generation has fallen by 15.5% to 16,483.18 MU. An expert noted that monsoon-related disruptions disrupted coal supply and mining activities, causing pressure on coal inventory levels.

The government's use of Section 11 aims to ensure reliable power supply by providing additional buffer generation capacity.