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2026-09-21 20:34:11
[Nearly 40% of Indian Coal-Fired Power Plants Face Critical Fuel Inventories; Rising Demand Pressures Supply] ⑴ Nearly 40% of India's coal-fired power plants have fuel inventories at critically low levels, primarily driven by El Niño-related weather conditions boosting electricity demand. ⑵ Government data shows that as of September 19, the number of power plants with inventories below critical levels increased to 74, up from approximately 60 a week earlier. ⑶ These power plants either have less than 25% of their required inventory or only enough to sustain operations for less than three days. ⑷ Peak electricity demand in India remained at approximately 230-250 gigawatts over the past week, compared to a record high of approximately 271 gigawatts in May. ⑸ Analysts believe that the decline in coal inventories is more of a short-term supply chain challenge than a structural shortage, with logistical disruptions affecting coal transportation. ⑹ The coal and railway sectors have announced measures to expedite coal delivery to power plants. ⑺ Although renewable energy generation grew by approximately 21% from April to August, coal-fired power generation remains crucial for meeting 24/7 electricity demand. (8) Domestic supply pressures prompted power producers to increase imports, with Indian utility coal imports rising to a 15-month high in August. (9) The government continues to focus on improving coal supply and transportation; while renewable energy capacity is expanding, coal remains the mainstay of the power system during periods of high demand.
