Key facts
- 45 coal-fired power plants in India have critically low coal stocks.
- These plants have inventories below 25% of required levels or less than three days of supply.
- The number of plants with low stocks rose from 31 in late July.
- Monsoon rains are disrupting domestic coal supply and transportation.
- Rising temperatures driven by El Nino are increasing electricity demand for cooling.
As many as 45 coal-fired power plants in India are currently operating with critically low levels of coal stocks, a situation exacerbated by rising electricity demand and disruptions to supply. These plants have inventories below 25% of their required levels or stocks insufficient for three consecutive days of power generation, according to data from the Central Electricity Authority cited by Reuters.
The number of plants facing this shortage surged to 45 from 31 at the end of July. Monsoon-related disruptions have tightened the immediate availability and transportation of coal from producing states to power plants. This has led to a rise in domestic coal prices this week, as noted by commodity consultancy BigMint.
BigMint also reported that India's thermal power plants drew down coal inventories sharply in the first 23 days of August, with coal consumption outpacing supplies. Stocks declined by 15.5% during this period. The uneven monsoon, coupled with El Nino-driven hotter-than-usual temperatures, has driven up power demand, particularly for air-conditioning, increasing reliance on thermal coal plants.
An official from NTPC, India's largest thermal power producer, stated that some plants are receiving only half the required number of coal rakes. In response to the supply issues, some plants have been asked by the power ministry to delay planned maintenance until the situation improves.