45 Power Plants in India Running on Critically Low Levels of Coal Stocks

As many as 45 coal-fired power plants in India are currently operating with critically low levels of coal stocks, as electricity demand rises amid the strong El Nino but supply is disrupted by monsoon rains, Reuters reported on Thursday, citing government data and industry officials.

These 45 coal power plants are operating with inventories below 25% of their required levels or with stocks insufficient for three consecutive days of power generation, per data from the Central Electricity Authority cited by Reuters. The number of plants with low coal stocks surged to 45 from 31 at the end of July.

Monsoon-related disruptions to domestic supply have tightened the immediate availability and transportation of coal from the coal-rich producing states to the coal-fired power plants.

As a result, domestic coal prices in India rose this week, commodity consultancy BigMint said on Wednesday.

“India’s thermal power plants drew down coal inventories sharply during the first 23 days of August as coal consumption continued to outpace supplies,” BigMint said in a separate analysis on Wednesday.

Stocks at India’s power plants declined by 15.5% between August 1 and 23, as receipts of coal deliveries lagged the rate of coal burns, the consultancy added.

The monsoon season in India has been disrupted by El Nino, with hotter-than-usual temperatures driving up power demand.

“The uneven monsoon has driven power demand, primarily for air-conditioning. But coal supplies are running hand-to-mouth,” an anonymous official at NTPC, India’s biggest thermal power producer, told Reuters.

“There is a need for five to six rakes at some plants, but we are receiving only half that number,” the executive said.

The higher coal demand for cooling is boosting India’s reliance on thermal coal plants, and some of these have been asked by the power ministry to delay planned maintenance until the supply issues are resolved, a senior official at the ministry told Reuters.

By Charles Kennedy for Oilprice.com

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