Daily gap in coal supply to thermal plants continues despite high demand

 Daily gap in coal supply to thermal plants continues despite high demand

New Delhi: With increased power demand and fuel consumption, coal supplies to domestic coal-based power have broadened in the first week of October.

The Central Electricity Authority (CEA) reported that on October 4, thermal plants used 23.17 lakh tonnes while receiving 18.02 lakh tonnes of coal throughout the day, leaving a supply shortfall of 5.15 lakh tonnes. The reserve stockpiles and imported coal were mostly used to cover the shortfall. A little over 93,000 tonnes of imported coal were consumed, while the remaining 4.21 lakh tonnes came from reserve reserves.

When the supply was 19.38 million tonnes and the demand was 21.63 lakh tonnes on October 1, there was a shortfall of 2.25 lakh tonnes. In the first four days of October, there was an average daily supply shortfall of 3.34 lakh tonnes. In September, the average shortfall was 2.87 lakh tonnes.

Thermal power plants now have enough coal on hand to run the facilities for slightly over 8 days, down from over 10 days at the end of September. The quantity was sufficient for 13 days in March.

Given the dry weather and occasional monsoons in August and September, the demand for electricity was unusually high. Year over year, the demand for electricity increased by 10.7% in September. According to economists, demand is predicted to increase 5.5% in FY24 with an upward skew.

Prior to reaching a new record high of 239.9 GW on September 1, the peak electricity demand reached multiple new highs in August. This year's peak demand was predicted to be 230 GW.

Even if temperatures have cooled down since the demand peaked, it is still high and remained at 203.44 GW in October with a 2.95 GW peak shortfall.

The center required last month that domestic coal-based power plants mix 4% imported coal until March of next year due to the rising demand for electricity. In order to fulfill the increased demand over the summer, gencos were requested to mix 6% imported coal until September. According to the government, there is a daily difference of around 200,000 tonnes between the amount of domestic coal received and the amount of coal used at these units using domestic coal.

Additionally, the union ministry of electricity mandated last month that imported coal-based (ICB) power plants run at full capacity until the end of October. The first order on this was sent to ICB plants in February, asking them to operate at full capacity until June 15; this order was then extended until September.

The coal ministry, however, claimed earlier this week that the nation's overall coal production experienced a "substantial surge" in September 2023, reaching 67.21 million tonnes (MT), exceeding the figures of 58.04 million tonne in the same month the previous year, representing an increase of 15.81%.

Coal India Limited's (CIL) output increased by 12.63% to 51.44 million tonnes in September 2023 from 45.67 MT in the same month the previous year. The total coal output (up to September 2023) has increased 12.06% in FY23–24 from 382.16 million tonne during the same time in FY22–23 to 428.25 million tonne.