Indian corporate conglomerate JSW Energy has resumed operation from its 300 megawatt (MW) Ratnagiri power station in Maharashtra. The plant, designed to run on imported coal, was out of service since the end of last fiscal.
As per data provided by the Power Ministry, the Ratnagiri plant generated 97.48 million units (MU) of electricity till 15 September, 2022 since resuming operation in end-August.
With the country facing an unprecedented rise in demand, the reliance on the coal-based plants to ensure uninterrupted power supply has increased. However, there was little support from the plants that are designed to run on imported coal due to soaring coal prices.
To address the situation, the government had even directed the imported-coal based (ICB) plants to resume operations on full-scale. Still, several ICB plants are idle.
At present, there are 15 ICB plants with an installed capacity of 17,255 MW, which account for a mere 8% of the total coal-fired plant fleet. During August, no power generation was recorded from four of these plants.
Subdued performance of ICB plants
Power generation from ICB plants fell 26% y-o-y to 2,943 MU in August, 2022 as against 3,954 MU in August, 2021. Volumes saw a modest improvement compared to 2,814 MU in July, 2022.
Total generation from these plants decreased 19% y-o-y to 19,211 MU during the first five months of FY’23.
In order to compensate for the shortfall, domestic coal-based plants were called to action as they registered a growth of 14% in power generation to 466,283 MU in the same period.
Demand for power generally eases during winter, but is likely to remain strong in the upcoming festive season.
This indicates there would be an ample market for the ICB plants as the government would be keen to reduce the burden on domestic coal-based plants and, more importantly, to avoid any supply crunch resulting from lower inventory position.
It is important to note that the government placed stringent measures to increase coal inventories at power plants. However, after registering recovery till August, stock levels started to dwindle again.
As on 15 September, the inventory level was down 7% to 26.78 mnt from the beginning of the month.
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