Monday , May 16 2022

India’s electricity demand picks up in October due to coal shortage


Workers work next to electric pylons in Mumbai, India, on October 13, 2021. REUTERS / Francis Mascarenhas

CHENNAI, Oct 16 (Reuters) – India’s electricity demand grew 4.9% in the first fortnight of October, with supply falling 1.4% below demand despite a 3.2% increase in coal generation and a 30% increase in solar production, according to Reuters. the analysis of government data was shown.

The increase in economic activity after the second wave of the coronavirus has increased the demand for electricity, which has led to a supply deficit due to the scarcity of coal that has forced the northern states to cut the energy this month up to 14 hours a day.

Rising energy demand and high global coal prices have left utility companies looking for coal, India’s dominant source of power generation, despite Coal India’s record supplies, a monopoly on coal production.

The share of coal in India’s electricity generation increased to almost 70% during the first fortnight of October, compared to an average of 66.5% throughout September, showed an analysis of data from the federal regulator of the POSOCO network.

Currently, nearly three-fifths of India’s coal capacities have coal inventories that would last three days or less, according to data from the federal energy ministry.

The average coal inventory of power plants would last four days, two-thirds less than the average two months ago.

Reuters Graphics

In early September, the power minister of the energy-hungry nation had asked officials to consider diverting coal to power plants with extremely depleted stocks and reduce inventory targets to 10 days from 14 days, to allow the transfer of coal to areas with greater scarcity. Read more

A reallocation of coal supplies over the past two months has led to an increase in the number of power plants with 1-3 days of fuel, while the number of plants with more than a week of stock has decreased, according to data from the ministry of energy.

Reuters Graphics

However, the number of coal-free utilities rose to 18 on 12 October, from 1 to 12 August.

Sudarshan Varadhan Reports; Graphics by Jitesh Chowdhury and Vijdan Mohammad Kawoosa; Edited by Christina Fincher

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