Power generation from coal-based plants increased 13% m-o-m to 87.83 billion units (BU) in Dec’21, marking recovery from the previous month when it fell to its lowest in FY’22.
The output also grew 3% on the year compared to 85.51 BU in Dec’20, registering the highest y-o-y growth in the past 4 months.
In view of low inventories assessed at the plants, the burden of power generation for coal-based plants was lowered post-Aug’21. This was also helped by a sluggish power demand on the onset of winters.
However, the measure only came momentary as demand for coal-based generation resurfaced on the back of steady decline in hydro-based electricity and limited support from nuclear and other source of conventional power.
Notably, coal’s share in the energy mix rose to an 8-month high of 83% in Dec’21, indicating a significant progress against the lows of 73% in Sept’21.
Source-wise Conventional Power Generation
Quantity in BU
New coal stocking norms to support higher supplies
In a major reform, the power ministry has introduced new stocking norms for the power plants to ensure fuel security and sufficient coal availability even during the period of less domestic coal supply.
This mandates plants to maintain 12 to 17 days of coal stock at pit head stations and 20 to 26 days coal stock at non-pit head stations. Besides, there is provision for penalty in case plants fail to maintain adequate inventory level.
The variation is based on coal consumption pattern during the year corresponding to 85% plant load factor (PLF). In particular, coal stock for 17 days at pit head plants and 26 days stocks at non-pit head power plants have been made mandatory from Feb to June every year.
At the end of Dec’21, coal inventories at the power plants improved to 23.36 mn t, driven by a steady rise in coal dispatches. It is important to note that stock levels had plunged to 11.41 mn t at the end of Sep’21 due to abrupt rise in power demand.
The power sector was supplied 63.32 mn t of coal in Dec’21, thereby, attaining the highest monthly volumes of the current fiscal. Keeping in mind the strong restocking demand, coal supplies are expected to remain elevated with peak summer season around the corner.
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