BackIndia’s coal fuelled power projects had around four days stock as on 3 October
Coal India on its part has said it will increase fuel supply to power utilities grappling with shortages. Some of the measures to ensure uninterrupted electricity supply by easing out coal stocks include sourcing coal from captive mines
PremiumNEW DELHI: India’s coal fuelled power projects had around four days worth of stock as on 3 October, according to union power ministry.
This assumes significance given that of India’s installed power generation capacity of 386.88 gigawatt (GW), coal-based projects account for 52.41% or 202.80 GW. India’s power sector is the largest consumer of coal in the country and state-owned Coal India Ltd (CIL) the largest miner. The country's 72 coal-based power projects had less than three days of stocks as on 1 October, Mint had reported.
“The average stock of coal in power plants was for about four days on 03.10.2021. However, this is a rolling stock, the coal is dispatched through rakes every day from the coal mines to thermal power plants," union power ministry said in a statement on Tuesday.
Had thermal power generation plants maintained 22 days of fuel stocks, as prescribed by the Central Electricity Authority (CEA), the situation of low stocks could have been avoided, Coal India said last week in a statement.
“The increase in demand is a positive sign; it indicates that the economy is growing. It is also because more than 28 million homes were connected to electricity under the SAUBHAGYA Programme and all these new consumers are buying appliance like fans, coolers, TVs etc.," the statement added.
As part of the largest household electrification drive globally, India has provided electricity access to 2.82 crore households under the ₹16,320 crore Saubhagya scheme.
“There was continuous rain in the coal bearing areas in the months of August and September, 2021 leading to lower desptach from coal mines in this period. However, the despatches have picked-up again. On 04.10.2021, the total number of rakes dispatched was 263 which is 15 rakes more than the rakes dispatched on the 03.10.2021. It is expected that the despatches from coal lines will increase further," the statement said.
Coal stocks are low at power projects due to an unprecedented increase in electricity demand following a revival in India's economic activities amid a steady decline in covid cases. Also, heavy rains in September hit coal production and dispatch, while a surge in prices of imported coal prices resulted in increased dependence on domestic coal. Lower generation from other fuel sources also contributed.
A failure to build adequate coal stocks before the monsoon and non-payments of dues from states such as Maharashtra, Rajasthan, Tamil Nadu, Uttar Pradesh and Madhya Pradesh also resulted in low supplies.
The development comes at a time when India is looking at an energy transition, with increased focus on green energy sources to fuel its growing demand.
“There are roughly 34 GW of coal-fired plants under construction in the region (this figure does not include an additional 32 GW under construction in India), according to the latest IHS Markit data. An additional 24 GW are in fairly advanced planning stages or have closed financing but have yet to begin construction," IHS Markit said in a statement.
“Beyond 2030 IHS Markit expects very few—if any—new coal plants to be built in the region," the statement added.
Coal India on its part has said it will increase fuel supply to power utilities grappling with shortages. Some of the measures to ensure uninterrupted electricity supply by easing out coal stocks include sourcing coal from captive mines.
Demand from the power sector is expected to account for around 700 mt of coal this year. India’s overall requirement is expected to go up to 1,123 mt by 2023.
"The demand for power has been increasing from August, 2021 onwards. In August 2021, the power consumption was 124 Billion Unit (BU) whereas the consumption in August, 2019 (before the COVID period) was 106 BU. This was an increase of almost 18-20%. The increasing trend is persisting – the demand on 04.10.2021 was 1,74,000 MW - 15000 MW more than on the corresponding day in the previous year," the power ministry statement said.
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