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Coal Reserves Tumble as Heatwave Strains Power Grid
India's thermal power plants are grappling with severely depleted coal reserves. Stocks have fallen to 68% of required levels as of May 20, a significant drop from 80% during the same period last year. This situation poses a potential risk to the nation's energy supply amid an ongoing intense heatwave.
Demand Skyrockets with Soaring Temperatures
The country's power demand has surged due to extreme heat. Peak demand reached a record 270.82 gigawatts (GW) on May 21, with the government expecting demand to hit 271 GW this year. The Central Electricity Authority (CEA) states that the ideal stock level for this time of year should be around 75.2 million tonnes.
Critical Stock Levels Hit Numerous Plants
Out of 189 thermal plants, with a total capacity of 222.7 GW, 21 are now reporting critical coal reserves, meaning they have less than 25% of their normal fuel requirements. Eleven of these are domestic coal-fired plants. Last year, 23 plants were in a similar critical state.
Domestic coal-based plants, comprising 203.9 GW of capacity, hold 48.66 million tonnes of coal. This figure represents 69% of the needed 70.19 million tonnes. Imported coal facilities are in a worse situation, with 17 plants (18.7 GW) holding only 2.6 million tonnes, just 51% of their required 5.0 million tonnes.
National Coal Production Goals
To reduce reliance on imports and meet growing energy demands, India aims to produce 1.31 billion tonnes (BT) of coal by fiscal year 2027. Coal India is targeted to produce 1 BT, with captive players contributing 228 million tonnes, and Singareni Collieries Company (SCCL) adding 79 million tonnes. In fiscal year 2025, coal production hit an all-time high of 1.05 BT, up 4.98% from the prior year.