As many as 184 thermal power plants of the country, with a total generation capacity of 211 gigawatt (GW), had 60% of “normative stock level” of coal at 34.5 million tonnes as on Monday, data from the Central Electricity Authority showed.
Additionally, 30 coal-based plants are reported to have fuel stocks at “critical” levels, including 22 domestic coal-based plants. A plant is said to have critical stock situation when the dry fuel is less than 25% of the normative level.
The decline in coal stocks with thermal stations is partly due to the declining peak power demand, as winter season approaches. But it also signifies supplies aren’t keeping pace with demand.
The domestic coal based (DCB) thermal plants including pithead and non-pithead with a total capacity of 193 GW had 58% of the normative coal stocks at 30.96 million tonnes as on October 14. The normative level of stocks required at DCB plants is 52.7 million tonnes for this time of the year.
On the other hand, the 17 imported coal-based non-pithead plants with a total generation capacity of 17.96 GW had 91% coal stocks of the required level. The total coal stocks as on October 14 in the imported coal-based plants were at 3.53 million tonnes against a normative stock requirement of 3.86 million tonnes.
The shortage in coal stocks against their normal levels of requirement comes at a time when the government is constantly highlighting the need to add more thermal power-based capacity to meet the rising demand. It has announced plans to add 80 GW of thermal power capacity by 2031-32 amid increasing electricity consumption.
The peak power demand this year touched 250 GW in May against the government’s projection of 260 GW. The CEA has now estimated the peak demand to touch 270 GW in the next financial year 2025-26. It expects the peak power demand to grow at a compound annual growth rate of 7% in the next five years against the current CAGR of 6%.
The country’s coal production during the first half of the current financial year increased to 453 million tonnes, up around 6% from 428.2 million tonnes in the same period of last fiscal, data from the coal ministry showed.
In September alone, the coal production increased by 2.5% to 68.96 million tonnes. The government had targeted monthly production of 70.88 million tonnes for September.
For FY25, the power sector has placed a demand of 874 million tonnes of coal to the coal ministry for supply to its thermal power plants and be able to meet the increasing demand for power. In FY24, the coal demand by the power sector stood at 821 million tonnes.
In the first six months of the fiscal, the coal ministry has dispatched 400.6 million tonnes of coal to the power sector, up 4.2% from 384.4 million tonnes in the same period last year, as per official data.
Earlier, in a move to ensure adequate stocks of coal at thermal power plants, the government has asked all the domestic coal based plants to continue blending of imported coal at 4% till October 15.
With the easing of temperatures across the country as the winters approach, the peak power demand has been declining. The peak power demand stood at 205 GW as on Oct 14, as per Grid India.
The normative stock level for the country’s thermal power plant is 56.6 million tonnes.
From: financialexpress
Financial News
