Report warns of power shortage by July; Coal India to import fuel
State-run Coal India, the world’s largest coal miner, will import the fuel for use by utilities, a power ministry letter seen by Reuters showed on Saturday, as shortages raise concerns about renewed power outages.
It would be the first time since 2015 that Coal India has imported the fuel, highlighting efforts by state and federal officials to stock up to avoid a repeat of April, when India faced its worst power cuts in more than six years.
India is expected to face a wider coal shortage during the third quarter of 2022 due to expectations of higher electricity demand, stoking fears of widespread power outages.
The power ministry said in the letter the decision was taken after nearly all states suggested that multiple coal import tenders by states would lead to confusion and sought centralised procurement through Coal India.
Meanwhile, independent research organisation CREA said a lower pre-monsoon coal stock at thermal power plants in India is suggestive of another power crisis in July-August.
The Central Electricity Authority of India (CEA) has predicted a peak power demand of 214 GW in August. In addition, the average energy demand could also increase to more than what it is in May to 1,33,426 million units (MUs).
“The onset of the southwest monsoon will further hamper mining and transportation of coal from mines to power stations... If coal stocks are not replenished to adequate levels before monsoon, the country might be heading towards yet another power crisis in July-August 2022,” CREA said.
It also said the recent power crisis in the country was not due to coal production but “distribution and official apathy”.
In another development, the ministry of power on Sunday asked the Central Electricity Authority of India (CEA) to compute the quantity of the coal consumed under the SHAKTI B policy mandating the blending of taking into account 10 per cent imported coal for blending which is equivalent to about 15 per cent of domestic coal in energy terms.