India has achieved a record level of seasonal coal stocks at coal-fired power plants, mitigating the impact of reduced hydropower output due to a drought and meeting the surging demand for electricity, Reuters reported.

The country has witnessed a remarkable shift from fuel scarcity to abundance within two years, thanks to a significant increase in domestic coal production and efficient coal transportation to power stations via the rail network.

As of February 26, power generators held 44 million tonnes of coal in stock, up from 26 million tonnes at the end of February 2022. The stock is sufficient to fulfill over 15 days of minimum requirements, up from less than 10 days in the same period of 2022.

This impressive accumulation of coal stocks is a result of increased domestic production. In January, India produced 99.7 million tonnes of coal, rising from 79.6 million and 90.0 million tonnes in the corresponding periods of 2022 and 2023 and marking a ten-month high, showed data from the Ministry of Coal.

Notably, the majority of the additional 12 million tonnes dispatched by mines in January were allocated to power generators compared to January 2022, in line with government directives to prioritize electricity supply.

In the same month, coal-fired generators set a new record by producing 112 TWh of electricity, compared to 91 TWh in January 2022, according to data from the Ministry of Power.

Despite the surge in power generation, coal inventories at power plants have continued to grow, surpassing consumption rates.

Furthermore, increased domestic coal production has reduced India's reliance on thermal coal imports.

Over April-December 2023, imports of non-coking coal amounted to 124 million tonnes, slightly lower than 127 million tonnes in the previous year. Import volumes accounted for 7.4% of the coal received by generators in the first eight months of fiscal year 2024, down from 7.7% in the corresponding period of FY2023.

The substantial increase in coal inventories is expected to mitigate the risk of widespread power cuts during the pre-monsoon (March-May) and post-monsoon (September-October) months this year.

Looking ahead, India's mining industry, traders, and importers remain optimistic about the future, as the government embraces a comprehensive approach to fossil and renewable generation to satisfy the soaring electricity demand.

(Writing by Riley Liang  Editing by Alex Guo)
For any questions, please contact us by inquiry@fwenergy.com or +86-351-7219322.

Share this article

Connect with us