India’s coal-based power plants have witnessed a sharp uptick in power generation supported by the recovery in industrial activities after they faced a lengthy setback during the monsoons.
As per tentative data provided by the Power Ministry, coal-based power generation rose to a 5-month high of 89.91 billion units (BU) in October, 2022 as it marks a strong comeback after falling in October. Output also jumped 16% y-o-y from 77.74 BU in November 2021.
The impetus on coal-based plants increased in November to cater to the higher-than-usual power demand which generally remains subdued after the onset of winter. At the same time, these plants had to raise their generation schedule to compensate for the loss in output from the hydro plants.
Notably, power generation from the hydro plants dropped to 10.08 BU in November from the peak of 23.4 BU recorded in August. Besides, there was little support from remaining alternate sources as these recorded a fall in generation m-o-m.
Coal inventory at plants rises
Despite higher coal burning, the power plants have accumulated 30.93 million tonnes (mnt) of inventory at the end of November as against 28.22 mnt in October. This is the first time that inventory was assessed above the 30-mnt mark at the end of a month since June 2021.
The gradual build-up in inventory levels have lessened the burden on plants, especially with regard to imported coal procurement.
However, the government has set its sights on attaining 45 mnt coal inventory by March next year, as a sign of preparedness for the peak summer season.
On the demand side, India is expected to see further increase in power consumption due to increasing use of heating appliances, especially in the northern part of the country, and for irrigation as the new rabi crop season commences.
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