In India, the situation regarding coal power plants is becoming concerning as they currently hold enough coal reserves for only three days of electricity generation. This is happening during a period of increased electricity demand, caused by warmer weather than usual for this time of year. This information comes from a report by OilPrice, which cites Reuters and data from the Central Electricity Authority of India.
### Declining Coal Reserves
Recent reports highlight that nearly half of India’s coal-fired power plants are facing critically low coal reserves. The number of plants in this predicament has risen from 60 in mid-September to 96 now. Since the start of October, coal reserves across power plants have fallen by 5%. This decline follows a 13.3% increase in coal-fired electricity production in September, which was not enough to meet the growing demand for electricity.
### Significant Energy Supply Gap
The electricity supply and demand gap in September reached a staggering 560 million kilowatt-hours, marking the largest imbalance since August 2023. This year, India’s peak daily electricity demand has been 45 to 50 gigawatts more than the same period last year.
According to the Ministry of Coal, domestic coal companies are working to boost supplies to these power plants, but recent data show that their efforts have not been sufficient to balance the electricity supply and demand.
The International Energy Agency (IEA) has forecasted a 4.2% rise in India’s coal demand this year, reaching a total of 1.353 billion tonnes. This prediction is attributed to the increasing electricity needs and disruptions in oil and gas supplies, particularly through the Strait of Hormuz.
As the energy situation continues to develop, it remains to be seen how India will address these challenges in electricity supply.
