+
India’s Depleted Coal Reserves Raise Blackout Risk
COAL & MINING

India’s Depleted Coal Reserves Raise Blackout Risk

Coal inventories at India’s power stations have fallen close to a five-year low, with plants representing more than 40 per cent of the country’s coal-fired capacity holding four days of fuel or less. The position has increased concerns about the power system’s ability to withstand further disruptions and periods of elevated demand.

As of October 4, 69 power stations, representing more than two-fifths of India’s coal power fleet, had fuel for four days or less. Plant operators monitor that level as a minimum reserve, and the current position is the weakest since December 2021, when industrial activity after the pandemic reduced stockpiles across major energy-consuming markets.

Unusually warm conditions and irregular rainfall have sustained demand for cooling, irrigation and industry well into October, when temperatures would normally begin to moderate across much of the country. Heavy rain has interrupted mining operations, while limitations in rail capacity have slowed deliveries and forced power stations to draw down their inventories.

Coal continues to generate nearly 70 per cent of India’s electricity despite rapid expansion in solar and wind power over recent decades. This leaves the electricity system exposed to weather events, transport disruptions and possible strikes at mines. Almost 90 per cent of power stations with low inventories are located away from coal-producing areas, increasing their dependence on rail supply.

The supply pressure could continue to affect preparations for next summer. The period through February is generally the coolest part of the year and provides a limited opportunity to rebuild stockpiles before heatwaves or unexpected increases in demand. Elara Capital India senior vice-president for research Rupesh Sankhe said cooler weather could provide some relief, while distribution utilities may use daily load shedding to manage demand. He added that Coal India and the railways would need to improve supplies to power stations so they can prepare for the summer.

Coal inventories at India’s power stations have fallen close to a five-year low, with plants representing more than 40 per cent of the country’s coal-fired capacity holding four days of fuel or less. The position has increased concerns about the power system’s ability to withstand further disruptions and periods of elevated demand. As of October 4, 69 power stations, representing more than two-fifths of India’s coal power fleet, had fuel for four days or less. Plant operators monitor that level as a minimum reserve, and the current position is the weakest since December 2021, when industrial activity after the pandemic reduced stockpiles across major energy-consuming markets. Unusually warm conditions and irregular rainfall have sustained demand for cooling, irrigation and industry well into October, when temperatures would normally begin to moderate across much of the country. Heavy rain has interrupted mining operations, while limitations in rail capacity have slowed deliveries and forced power stations to draw down their inventories. Coal continues to generate nearly 70 per cent of India’s electricity despite rapid expansion in solar and wind power over recent decades. This leaves the electricity system exposed to weather events, transport disruptions and possible strikes at mines. Almost 90 per cent of power stations with low inventories are located away from coal-producing areas, increasing their dependence on rail supply. The supply pressure could continue to affect preparations for next summer. The period through February is generally the coolest part of the year and provides a limited opportunity to rebuild stockpiles before heatwaves or unexpected increases in demand. Elara Capital India senior vice-president for research Rupesh Sankhe said cooler weather could provide some relief, while distribution utilities may use daily load shedding to manage demand. He added that Coal India and the railways would need to improve supplies to power stations so they can prepare for the summer.

Related Stories

Gold Stories

Next Story
Infrastructure Energy

KPIL announces new business wins worth Rs 22.25 bn

Kalpataru Projects International (KPIL) has secured new orders and a letter of comfort worth approximately Rs 20.31 billion in its power transmission and distribution (T&D) business across India and international markets. Additionally, its Swedish subsidiary, Linjemontage i Grästorp AB, has received an order worth approximately Rs 1.94 billion (SEK 200 million), taking the combined order value to Rs 22.25 billion.Commenting on the order wins, Manish Mohnot, Managing Director and CEO, KPIL, said the new orders reflect customer confidence in the company's execution capabilities and technical ex..

Next Story
Infrastructure Transport

Tiruchi Airport Handles over 20 t of Domestic Cargo in a Month

Tiruchi International Airport has handled more than 20 t of inbound and outbound domestic cargo since the facility was launched in late August. Outbound shipments have exceeded inbound volumes, with private carriers transporting goods to Chennai, Delhi, Bengaluru and Mumbai. The domestic cargo service began after the Bureau of Civil Aviation Security (BCAS), an independent department under the Ministry of Civil Aviation, granted clearance. The facility was introduced to give local businesses a faster route for sending goods to major domestic hubs, reducing their reliance on cargo routed throug..

Next Story
Infrastructure Urban

Gabriel India Forms Joint Venture with Forvia for Advanced Seating

Gabriel India, part of the US$2.6 bn Anand Group, has formed a joint venture with France-based Forvia to bring advanced seating systems and technologies to the Indian automotive market. The partnership expands Gabriel India’s participation in vehicle systems as automotive architectures become more sophisticated and customer requirements evolve. The joint venture, named Faurecia Anand Seating India, combines Forvia’s global seating technology expertise with Gabriel India’s manufacturing capabilities, customer relationships and understanding of the Indian automotive market. Forvia will hol..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code