Power plants designed to run on imported coal have increased their generation volume by 7% y-o-y to 4,425 million units (MU) in June, 2022 compared to 4,152 MU in June, 2021. Notably, this is the first time these plants have recorded y-o-y growth in FY23.
The output was also marked 11% higher m-o-m as against 3,986 MU in May, 2022.
The imported coal-based plants have been accorded must-run status by the Ministry of Power to reduce burden on domestic coal-based plants at a time when power demand is robust.
Nevertheless, these plants are yet to attain full scale capacity as some of the units are facing lengthy absence amid lack of power purchase agreements and soaring coal prices.
In June, five out of the 15 imported coal-based plants were out of operation.
Overall, these plants have generated 13,457 MU in the first quarter of FY23 (April-March 2022), down 11% y-o-y from 15,091 MU in the corresponding period of FY22.
Inventory level climbs to 12 days of generation
The gradual uptick in coal procurement via imports has helped imported coal-based plants to build-up inventory of 2.14 million tonnes (mnt) as on 12 July, which is sufficient for 12 days of power generation.
This marks a significant recovery from the levels of 0.95 mnt seen in mid-May.
To ensure uninterrupted power supply, the government is putting efforts to bring back the non-operational plants to operation by arranging working capitals and formulating tariff rates.
With the arrival of monsoon, power demand has dropped to 4,205 MU/day during 1-13 July as against 4,471 MU/day in June. However, post-resumption of economic activity after rainy season, the imported based-coal based plants are likely to play a crucial role as the country looks to avoid possibility of coal crunch as last year.
Leave a Reply