Half of India’s 191 coal-fired power plants were operating with critically low fuel stocks as of October 19, with electricity demand rising amid hotter-than-usual weather linked to El Niño. Government data showed that 96 plants had enough coal to generate power for fewer than three days, compared with 60 plants in mid-September.

The deterioration has occurred despite the Ministry of Coal stating last week that it had increased supplies to power stations. Total coal stocks held by power plants declined by about 5 per cent from the beginning of October, according to data from the Central Electricity Authority (CEA).

Daily peak electricity demand this year has been about 45 GW to 50 GW higher than a year earlier. Weaker monsoon rainfall has reduced hydroelectric generation, increasing dependence on thermal power stations during periods of strong consumption.

The gap between electricity demand and supply widened to 560 mn kWh in September, the highest level since August 2023. Coal-fired generation rose 13.3 per cent from a year earlier during the month, while hydropower generation fell 20 per cent, CEA data showed.

India is expanding renewable energy capacity, and non-fossil sources accounted for nearly 55 per cent of power generation. However, limited battery storage capacity means surplus clean electricity cannot be saved easily for use during demand peaks, leaving the country reliant on coal-based generation when consumption rises. The combination of higher demand, lower hydroelectric output and falling plant inventories has intensified pressure on the power system, while authorities work to maintain fuel deliveries to generating stations.