Coal India asks units to ramp up supplies as heatwave fuels record power demand

By Sethuraman NR

NEW DELHI May 26 (Reuters) – State-run Coal India has asked its subsidiaries to increase coal supplies to power plants to avoid blackouts as the country’s electricity demand hits a record high following an intense heat wave, two sources with direct knowledge of the matter said.

Many regions in the country are facing power outages, especially at night when renewable energy is not available, as record temperatures triggered by El Niño weather conditions strain the grid.

According to the latest data from the power ministry advisor Central Electricity Corporation, as many as 21 power plants have critically low coal stocks; These stocks are only enough to meet one week’s demand.

The world’s largest coal miner has instructed its subsidiaries to maximize shipments using all modes of transport, including rail links that carry coal directly from mines to power plants, sources said.

Coal India on Tuesday said it had urged utilities to build stock before demand peaks, especially those located in logistically challenging areas.

India’s peak power, a measure of maximum electricity needs, reached a record high of 270.8 gigawatts (GW) last week.

Despite 228 GW of non-fossil fuel capacity, coal still accounts for over 70% of India’s electricity generation.

Coal India and its eight subsidiaries, which account for nearly 80% of the country’s coal production, saw production fall 9.7% to 56.1 million metric tons in April, company data showed.

The miner said it held 168 million tonnes of coal, including 47.6 million tonnes in power plants, enough to cover 19 days of consumption.

It was stated that stocks in mines reached 113.5 million tons as of May 23, an increase of approximately 10% compared to the previous year.

(Reporting by Sethuraman NR; Editing by Nidhi Verma and Emelia Sithole-Matarise)