Almost 40% of India's coal power plants low on fuel
What's the story
Around 40% of India's coal-fired power plants are running on critically low fuel stocks, government data revealed. The situation has been triggered by a spike in power demand amid El Nino-induced hotter-than-usual weather conditions. As of September 19, the number of such plants with less than 25% coal stocks or capable of generating power for less than three days, has jumped to 74 from around 60 last week.
Demand surge
Peak power demand between 230GW and 250GW
India's peak power demand, which indicates the maximum electricity consumption, has been between 230GW and 250GW in the last week.
In May, it hit a record high of 270.70GW.
Crisil analysts have said that the declining stocks at power plants are more of a logistical issue than an indication of any structural supply constraints.
Supply measures
Coal-fired power crucial for round-the-clock demand
In early September, India's coal and railway ministries announced plans to ramp up supplies to the plants after erratic monsoon rains disrupted shipments.
Despite a 21% rise in renewable power generation between April and August, Crisil noted that coal-fired power remained crucial for meeting round-the-clock demand, due to the intermittent nature of clean energy.
Import increase
Power producers' coal imports surged to a 15-month high
In August, Indian power producers' coal imports surged to a 15-month high as a heatwave increased electricity demand and hydroelectric power generation remained subdued. This prompted utilities to rely on expensive overseas supplies.