India’s coal-based power plants saw an improvement in generation schedule during September, 2022 boosted by the revival in industrial and commercial activity ahead of the festive season. Power generation by coal-based plants jumped 12% y-o-y to 88.68 billion units (BU) in September 2022. This also ended a steady decline in output levels seen in the past four-months.
The sharp rise in power demand was catered to primarily by the coal-fired plants this year, especially when higher-than-usual temperatures were recorded in summer. However, the growth rate slowed down, induced by the monsoon, during the July-August period, post-which it has again shown a recovery.
In fact, better power availability from hydro stations provided minor comfort to the coal-based plants during September as they compensated for the loss in generation from nuclear and gas-based plants.
Source-wise Power Generation
Quantity in BU | Others include generation from lignite/gas/diesel based plants
Overall, generation from coal-based plants increased 12% y-o-y to 574.2 BU in April-September, 2022, accounting for 78% share in the total conventional energy mix that comprises thermal, nuclear, hydro plants along with electricity imported from Bhutan.
Inventory level starts to dwindle
Higher coal consumption due to the rise in generation volume combined with lesser supplies impacted by incessant rains resulted in a fall in inventory levels assessed at the power plants.
The power plants were supplied coal at an average of 1.72 mnt/day during September which was slightly lower than 1.74 mnt/day recorded in August, 2022, as per data compiled by the power ministry.
Consequently, coal stock at power plants dropped to 26.1 mnt at the end of September, sliding down from levels of 29 mnt seen during July-August, 2022. However, the current stock levels were around 129% higher than the year-ago levels of 11.41 mnt.
Outlook
Going forward, demand for power is expected to remain strong in the festive season. But, with improved inventory position and return of many imported coal-based power plants to operation, the power sector is in a better shape to address any abrupt demand surge and, importantly, avert possibility of repeat of the crisis seen in the previous year.
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