Indian power plants tap stockpiles, cut purchases as coal use slides
The share of coal in India’s power mixture fell to the lowest level of 5 years in July
July hydroelectric output 22.4%, renewable energy grew by 14.4%
Coal stocks in energy power plants fell 13% in July
Coal India has been released, supplying is falling at the most upright speed over the years
By Sudarshan Varadhan and Sethuman NR
SİKGAPAR/NEW DELHI, August 6 (Reuters) – India’s electrical power plants, despite an increase in electricity demand, the use of coal for energy production is drawn for the fourth month, as records draw more coal than high -record stocks and coal makes new purchases from India.
Coal -powered power plants typically benefit from inventories when Coal India, which constitutes about three quarters of the country’s production, leaving behind. India is the world’s number 2 coal manufacturer and consumer after China.
However, according to analysts and government data, a continuous increase in hydro and renewable power prevented coal fuel production.
Citi analysts in a note on Monday, coal stocks held by energy power plants fell by 58.1 million metric tons in June in July, 13% of them fell by 13%, and in the last decade, more upright than an average of 2% decrease in the last decade.
“Adequate stocks and coal shortage risk of energy bunning power plants helped to reduce purchasing from Coal India,” coal, former president of India. He said.
Bhattacharya, the president of Peerless Group, which invests in sectors including finance and health services, said, “However, when this temporary and power demand begins to grow faster, coal purchase will increase.” He said.
Coal India’s production in July has decreased at the highest rate since 2019, and the supply decreased in the fastest rate in five years, the company data showed that July production decreased by 15.6% and supply 9.9% compared to the same period last year.
The decline stems from higher production by private miners who entered India’s market share after the new Delhi opened coal mining in the private sector in 2020.
The growth in electricity use has increased this year due to heavy rains that reduce a wider economic slowdown and cooling demand, but the generation increased slightly in July.
Nevertheless, according to the analysis of the data from the Federal Network Regulator Grill-India, the coal-fuel generation, which typically constitutes approximately 75% of India’s electricity generation, fell to the fourth month in July.
The data helps to reach a growth of 22.4% in hydroelectric production and a 14.4% increase in production from renewable sources, including wind and sun in July, and to reach 164.66 billion kilowatt hours (KWh) despite the decrease in coal power of energy production by 1.8%.
The share of coal in energy production fell to 64.3% in July – the lowest level in five years and 68.3% compared to the previous year.
In the first half of 2025, India plans to increase its non -fossil fuel capacity to 500 GW by adding records of 22 GW new solar and wind capacity to 500 GW by 2025, while analysts are waiting for more decrease in the share of coal fuel power. (Reporting by Sudarshan Varadhan and Sethuraman; Editing by Kim Coghill)
