Coal Stocks Shrink As Power Demand Surges

28 Jul 2026 CW Team

Coal stocks at India's thermal power plants have fallen as high electricity demand coincides with reduced hydroelectric and wind generation after an El Niño-induced weaker monsoon, according to data from the National Power Portal. The diminished generation and monsoon-driven production and transport disruptions have cut inventories and tightened supply ahead of peak summer demand.

As of 20 July power plants held about 40.7 million tonnes (mn t) of coal, sufficient for about 13 days of operations after peak demand neared 270 gigawatts (GW) on 17 July. That level compares with roughly 53 million tonnes (mn t) in May when stocks lasted about 19 days and demand hit a record 270.8 GW. The contraction in coal inventories has narrowed the buffer available to grid managers amid heightened consumption.

The energy shortage worsened in mid July, reaching 23 million units (mn units) on 19 July even though demand eased to 250 GW by 21 July. Analysts and grid data show typical shortages are in single-digit million units, and an earlier report in May recorded a shortfall of 15 million units. States including Punjab, Haryana and Goa have been among the worst affected, according to the Grid Controller of India.

The tightening has led to instances of load shedding and targeted power cuts in some regions as system operators balance fuel supply with demand. Authorities are monitoring coal movement and generation mixes across thermal, hydroelectric and wind assets to restore inventories and stabilise supply.

Grid managers have adjusted unit commitments and increased utilisation of available domestic coal stocks while arranging rail and road logistics to expedite deliveries. Thermal stations are synchronising schedules with hydroelectric output variations to reduce peak stress, and regulators are coordinating with distribution companies to manage demand and prioritise critical infrastructure. Supply depends on rail and road movements this season.

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