Nearly a Third of India's Coal Power Plants Have Critical Low Fuel Stocks

Nearly a third of India’s coal-fired power plants were operating with critically low fuel stocks as of September 9, even as government measures to increase supplies sought to keep pace with elevated electricity demand. Prolonged hot weather has increased cooling requirements across the country.

India’s peak power demand has remained close to the record 270.70 GW reached in May. Demand stood at about 267 GW on each of the previous few days, reflecting sustained pressure on the power system amid an El Niño weather pattern.

Data from the Central Electricity Authority showed that the number of plants with critical coal inventories rose to 59 on September 9 from 45 at the end of August. The category covers facilities holding less than 25 per cent of the required stock or having enough coal to generate electricity for fewer than three days.

The increase has raised concerns about the reliability of coal-fired generation, particularly as clean energy sources are meeting a large share of daytime demand but cannot fully offset the system’s storage limitations. Insufficient battery capacity and lower water reservoir levels are adding pressure to thermal power stations, according to energy analysts.

The government deployed 444 coal trains, or rakes, on September 6, compared with 370 on September 3, to improve deliveries to power plants. Coal India and its subsidiaries have also increased shipments by road. The company said it continued to hold about 76 mn t of coal at its pitheads, describing the inventory as adequate.

The immediate requirement is to maintain regular coal flows to utilities through the rail network and prevent stock levels from falling further. With demand remaining near historic highs, any disruption in fuel movement could increase pressure on electricity generation during periods of intense heat.

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