Indian power consumption, buoyed by soaring temperatures in peak summer, surged in April 2022 thereby adding more pressure on the coal-fired plants.
As per data provided by the Power System Operation Corporation (POSOCO), power consumption during the first 16 days of April 2022 increased to 4.41 billion units (BU) against 4.20 BU in the corresponding period of March 2022. The present consumption rate is also 11% higher than the levels seen in April 2021.
The increase was primarily due to the high consumption pattern seen in the northern, western and eastern parts of the country, whereas requirement in the southern and north-east regions had declined on absolute terms during the 16-day period in April 2022.
In particular, consumption in the northern region, comprising of states such as Punjab, Haryana, Rajasthan, Delhi, UP etc, had recorded the highest growth.
Region-wise power consumption
Source: POSOCO | Quantity in MU
Notwithstanding demand, the power sector is currently facing operational hurdles due to record high imported coal and gas prices. As a result, several state governments have imposed power cuts to make up for the deficit.
Evidently, the shortfall in power supply has widened to 884 million units (MU) during 1-16 April, 2022, recording a five-fold jump compared to 174 MU in the corresponding period of March 2022.
Conditions at power plants alarming
To cater to the elevated demand, coal-based plants have generated 52,504 MU of power during 1-15 April, 2022 at a healthy rate of 3.5 BU/day, which accounts nearly 82% of the total conventional power generation. The average generation by these plants was recorded at 3.29 BU/day in April 2021.
In doing so, their coal inventories have started to decline sharply. As on 13 April, 2022, the stock level was assessed at 23.17 mnt as against 25 mnt seen over the past three months.
Indicating concern, 9 out of 15 state electricity boards have critical stock below 7 days of generation at their power stations.
Coal inventory at power plants owned by state electricity boards
* Data compiled for plants having linkages/captive blocks.
The power ministry has recently advised state governments to ensure that imported coal-based plants are fully operationalized and also laid emphasis on coal imports for blending purposes.
However, with international coal prices at elevated levels any significant increase in imports is limited. This implies that it would be challenging for domestic coal supplies to meet the surplus demand in the short term.
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