Coal stocks dip at power plants as heat pushes electricity demand higher

A fresh worry over India's power supply has emerged. Fears of a major electricity crisis have resurfaced, as nearly a third, or 33 percent, of the country's thermal power plants have very low coal stocks, even as demand for electricity keeps rising. The government is now trying to boost supply. According to official data, prolonged hot weather has kept power demand elevated, and this has led to the current situation.

India's peak power demand hit a record 270.70 gigawatts in May, and remains close to that level. The El Nino weather pattern has increased the need for cooling, which has kept pushing up electricity demand, which reached around 267 gigawatts in recent days.

According to Central Electricity Authority data, the number of power plants with critically low coal stocks, defined as less than 25 percent of required stock, or coal sufficient for less than three days of power generation, stood at 45 at the end of August and rose sharply to 59 by September 9. Manoj Kumar, an analyst at the Centre for Research on Energy and Clean Air, said the rising number of power plants with low coal stocks is a matter of concern.

According to analysts, clean energy, especially solar power, is meeting most of the daytime demand for electricity, but a lack of battery storage and lower water levels in reservoirs are putting pressure on coal-based power generation.

Manoj Kumar said India needs to further increase the supply of coal to power companies via the railway network to keep stocks at normal levels. On September 6, India deployed 444 trains, or rakes, to transport coal to power plants, up from 370 on September 3. Coal India and its subsidiary companies have also increased coal transport by road. Coal India, the world's largest coal mining company, said it still has an adequate stock of around 76 million tonnes of coal at its mine heads.