In India, there has been a significant increase in the number of coal-fired power plants that are running low on fuel. Currently, nearly 40% of all thermal power plants in operation have critically low coal reserves. According to data from the government reported by OilPrice, 74 coal power plants had less than three days’ worth of coal supplies as of this past weekend.
### Fuel Reserves Decline
Just a week prior, the number of plants facing fuel shortages was at 60. While the amount of coal at thermal power plants has dropped considerably, the overall coal supply in the country remains stable. The main issue seems to be related to transporting coal to power plants in various states, especially with rising electricity demand. August brought heavy rains which affected coal transport from key mining regions.
### Government Actions and Future Demand
In response to this situation, India’s Ministry of Coal announced in early September that local coal companies were stepping up their deliveries to thermal power plants. The ministry is keeping a close eye on plants that have seen their coal reserves dip below 25% of what is typically required, and they are taking steps to ensure that supplies improve.
Coal continues to be the primary source of electricity generation in India. The International Energy Agency predicts that coal demand will increase by 4.2% this year, reaching a total of 1.353 billion tonnes. This expected rise is largely attributed to higher electricity demands and challenges in oil and gas supplies from the Strait of Hormuz.
