India’s thermal power sector is facing tighter coal inventories as electricity demand remains unusually high in September, prompting the Centre to take measures aimed at maintaining adequate power generation.
According to the latest data cited in a September 27 report, 77 out of 190 thermal power plants had critical coal stocks as of September 26. Although the number of plants at critical levels declined from 80 on September 24, the actual stock position weakened.
Editorial Insight
Key Highlights
Important points readers should notice.
Issue/Event: Coal inventories at 77 thermal power plants have reached critical levels.
Location: Multiple thermal power plants across India.
Authority/Organisation: Ministry of Power / Central Electricity Authority.
Action Taken: Section 11 invoked to maximise generation from captive coal-based plants.
Impact: Overall thermal coal stocks are equivalent to around seven days of requirement, amid high electricity demand.
Coal stocks at the affected plants stood at around 21.98 million tonnes, down from approximately 29 million tonnes on August 31. Overall coal inventories were equivalent to around seven days of requirement and 37% of the prescribed stock level.
The pressure comes as India's electricity demand has remained unusually strong for September. The country's peak power demand reached 269 GW on September 10, the highest recorded peak demand for the month and close to the year's peak of 270 GW recorded in May.
The Centre has responded by invoking Section 11 of the Electricity Act, which allows the government to direct power-generating companies to operate their plants according to government instructions during extraordinary circumstances.
Editorial Analysis
Why This Matters
Thermal power plants play a major role in India's electricity supply. Sustained coal-stock pressure could affect the ability of some plants to maintain generation if supplies are not replenished quickly. The Centre's decision to maximise generation from captive plants is intended to add available electricity to the system while improving supply during a period of elevated demand. The situation is particularly significant because September's peak demand has approached levels normally associated with the summer season. At the same time, lower hydropower output has increased dependence on coal-fired generation.
Under the latest directions, captive coal-based generating stations with capacity of 50 MW or more have been asked to operate at the maximum available capacity from October 1 to December 31, 2026. After meeting their own captive requirements, generators have also been directed to offer available surplus electricity through power exchanges.
The generators have additionally been asked to maintain adequate coal stocks and submit weekly information to the Central Electricity Authority (CEA) covering generation, captive consumption, electricity sales, available capacity and coal inventories.
The situation has also been influenced by changes in India's power generation mix. Hydropower generation during the first three weeks of September was lower than a year earlier, while coal-fired generation increased as the country relied more heavily on thermal plants to meet demand.
Officials and industry observers have described the current coal-stock pressure primarily as a supply and logistics issue rather than an indication that India has run out of coal resources. Measures are being taken to accelerate coal transportation to plants facing shortages.
