Nearly 40% of India’s Coal Power Plants Face Critical Fuel Shortage

Nearly 40% of India’s coal-fired power plants are operating with critically low fuel stocks, as unusually high electricity demand and supply-chain disruptions put pressure on inventories at thermal power stations, according to government data reported on September 21. (Reuters)

Central Electricity Authority data showed that 74 power plants were classified as having critically low coal stocks as of September 19, up sharply from around 60 plants only a week earlier. India has 190 thermal plants covered by the data. (Business Standard)

A plant is considered to have critical coal inventory when stocks fall below 25% of the required level or when available fuel is sufficient for less than three days of generation. (Business Standard)

KEY HIGHLIGHT
74 of India’s 190 thermal power plants are facing critically low coal stocks — nearly 40% of the total.

A later analysis of the same CEA data showed total coal inventories at thermal power stations had fallen to 22.9 million tonnes, equivalent to only around seven days of fuel cover and about 39% of normative stock requirements. At the end of August, 51 plants had been classified as critical, highlighting how rapidly the situation has deteriorated in September. (Business Standard)

The pressure comes as India's electricity consumption remains elevated. Peak power demand has been hovering between 230 GW and 250 GW during the past week, while demand had reached an all-time peak of 270.70 GW in May. Hotter-than-usual conditions linked to El Niño have contributed to stronger electricity consumption. (Business Standard)

Erratic monsoon rainfall has also affected coal transportation and deliveries. The coal and railway ministries said earlier in September that supplies to power stations were being increased after weather-related disruptions affected shipments. Rake loading for the power sector subsequently increased from 370 to 444 rakes within a week, according to later reporting based on sector data. (Business Standard)

POWER SECTOR SNAPSHOT
Critical plants: 74 of 190
Coal inventory: 22.9 million tonnes
Estimated fuel cover: Around 7 days
Recent peak demand: 230–250 GW

Despite the sharp inventory decline, analysts at Crisil said the current situation appears to be primarily a temporary logistics problem rather than evidence of a structural shortage of coal. State-owned Coal India continues to hold around 76 million tonnes of coal at its pitheads, suggesting availability at the production end remains adequate. (Business Standard)

Renewable electricity generation increased about 21% between April and August, but coal-fired power remains important for meeting round-the-clock electricity demand because renewable generation can vary and large-scale storage remains limited. (The Economic Times)

Indian utilities have already increased their reliance on overseas supplies. Power-sector coal imports reached a 15-month high in August at 5.52 million tonnes, up 85.6% from a year earlier, as strong demand and subdued hydropower generation pushed utilities towards more expensive imported coal. (Reuters)

The immediate challenge will therefore be moving available coal quickly enough to power stations facing the lowest inventories. With electricity demand remaining high, restoring plant-level stocks will be important for maintaining adequate buffers across India's power system.