India’s Coal Crisis Deepens as Power Demand Surges
Indian power generators are bracing for a coal supply squeeze, with half of the country’s coal power plant fleet operating with critically low stocks, Reuters has reported, citing higher than usual demand for electricity because of warmer than usual weather for this time of year. As many as 96 coal power plants in the country only have stocks for three days of consumption, the publication wrote,…
Indian power generators are grappling with a severe coal supply shortage as electricity demand surges due to unusually warm weather, according to Reuters. Half of the nation's coal power plants are operating with near-empty coal reserves, up from 60 plants as of mid-September, Reuters reported. As of October, total coal stocks at power plants have dropped by 5%, despite a 13.3% rise in coal power generation last month.
This has resulted in a 560 million kWh imbalance between supply and demand, the highest since August 2023, Reuters noted. In response, India's Ministry of Coal says domestic coal companies are increasing supply to power plants, but this has not been sufficient to close the gap. Daily electricity demand in the country has been 45-50 GW higher than last year's levels, Reuters added.
With demand continuing to rise and oil and gas disruptions at the Strait of Hormuz, India's total coal demand is projected to increase by 4.2% to 1.353 billion tons this year, reversing last year's small decline, according to the International Energy Agency's Coal Mid-Year Update 2026. The lack of battery storage at new solar installations may exacerbate the problem, as solar output is entirely dependent on weather conditions and not adjusted for demand fluctuations.
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