Coal Stocks Fall to Critical Levels at 59 Power Plants as Heat Drives Demand
Coal stocks have fallen to critical levels at 59 thermal power plants as prolonged hot weather keeps India's electricity demand near record highs, raising pressure on power generation.
Nearly one-third of India's coal-fired power plants are operating with critically low fuel stocks as prolonged hot weather keeps electricity demand elevated, putting pressure on thermal power generation despite efforts to increase coal supplies.
India's peak power demand has remained close to the record 270.70 gigawatts (GW) recorded in May. In recent days, demand has repeatedly reached around 267 GW as higher temperatures have increased the need for cooling. The prevailing El Nino weather pattern has added to the pressure on the power system.
According to data from the Central Electricity Authority, the number of thermal power plants with critically low coal stocks increased to 59 as of September 9, compared with 45 at the end of August. Plants are considered to have critical stocks when their inventory is below 25% of the required level or when available coal is sufficient to generate electricity for fewer than three days.
The increase has raised concerns among energy analysts, particularly as power demand remains high. The situation is also being influenced by constraints on alternative sources of electricity. Solar power is meeting a significant portion of daytime demand, but limited battery storage capacity and lower water reservoir levels are increasing the reliance on coal-based generation.
In the short term, greater coal supplies to power plants will be necessary to prevent inventories from falling further. Rail transportation is particularly important for moving coal to utilities and maintaining adequate stocks at thermal plants.
The government has already increased coal deliveries in response to the pressure. The number of coal rakes deployed rose to 444 on September 6 from 370 on September 3, helping move more fuel to power-generating units.
Coal India and its subsidiaries have also increased coal transportation by road to supplement supplies reaching power plants.
Despite the low stocks at several thermal plants, Coal India has said that it continues to maintain adequate inventories at its mining locations. The company, the world's largest coal producer, has around 76 million metric tonnes of coal available at its pitheads.
The contrasting situation between adequate pithead inventories and critically low stocks at several power plants highlights the importance of strengthening coal transportation and distribution as India's electricity demand remains elevated.
