Gujarat Asks Factories to Curb Power Usage as Demand Surges
COAL & MINING

Gujarat Asks Factories to Curb Power Usage as Demand Surges

Gujarat has asked factories to reduce electricity consumption during evening hours as rising demand and low coal inventories at power plants put pressure on supplies. The western Indian state has also sought additional coal and electricity from the federal government to manage the tightening situation.

Uttar Gujarat Vij Company has sent messages to industries and citizens asking them to conserve power during the peak period from 5 p.m. to 11 p.m. The state has urged factories to voluntarily move production away from the evening peak, when the gap between demand and available supply is most challenging.

The appeal comes as half of India’s 191 coal-fired power plants are operating with critically low coal inventories, according to data from the Central Electricity Authority. Gujarat is also planning new coal, nuclear and battery-storage projects to support electricity needs over the longer term.

Hotter weather linked to El Niño, greater irrigation requirements and increased industrial activity have contributed to the rise in power consumption. Several states, including Punjab, Madhya Pradesh, Bihar, Kerala, Tamil Nadu and Himachal Pradesh, are seeking short-term coal-fired electricity through tenders, according to power ministry data.

India’s total coal inventories at power plants have declined by about 5 per cent since the beginning of October. At the same time, daily peak electricity demand has been 45 gigawatts (GW) to 50 GW higher than a year earlier. The gap between electricity demand and supply widened to 560 mn kilowatt-hours last month, the highest level since August 2023, government data showed. India’s limited battery capacity also makes it difficult to store clean electricity generated during daylight hours for use during the evening peak.

Gujarat has asked factories to reduce electricity consumption during evening hours as rising demand and low coal inventories at power plants put pressure on supplies. The western Indian state has also sought additional coal and electricity from the federal government to manage the tightening situation. Uttar Gujarat Vij Company has sent messages to industries and citizens asking them to conserve power during the peak period from 5 p.m. to 11 p.m. The state has urged factories to voluntarily move production away from the evening peak, when the gap between demand and available supply is most challenging. The appeal comes as half of India’s 191 coal-fired power plants are operating with critically low coal inventories, according to data from the Central Electricity Authority. Gujarat is also planning new coal, nuclear and battery-storage projects to support electricity needs over the longer term. Hotter weather linked to El Niño, greater irrigation requirements and increased industrial activity have contributed to the rise in power consumption. Several states, including Punjab, Madhya Pradesh, Bihar, Kerala, Tamil Nadu and Himachal Pradesh, are seeking short-term coal-fired electricity through tenders, according to power ministry data. India’s total coal inventories at power plants have declined by about 5 per cent since the beginning of October. At the same time, daily peak electricity demand has been 45 gigawatts (GW) to 50 GW higher than a year earlier. The gap between electricity demand and supply widened to 560 mn kilowatt-hours last month, the highest level since August 2023, government data showed. India’s limited battery capacity also makes it difficult to store clean electricity generated during daylight hours for use during the evening peak.

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