Minister warns of possible power crunch
COAL SUPPLIES FOR POWER STATIONS LAG AS ELECTRICITY USAGE RISES
TWe’ve added 28.2 million consumers. Most of them are lower-middle class and poor, so they are buying fans, lights, television sets.”
R. K. Singh | Union Power Minister
he country is facing possible energy supply problems in the coming months due to coal shortages and a post-pandemic surge in demand, the power minister said in a report published yesterday.
His comments come as China and European countries face energy crises that are disrupting global supply chains and sending prices soaring.
“Normally the demand starts coming down in the second half of October... when (the weather) starts cooling,” R. K. Singh told the Indian Express newspaper in an interview.
“But it’s going to be touch and go,” Singh said, calling demand for electricity “tremendous”.
“Demand is not going to go away, it’s going to increase... We’ve added 28.2 million consumers. Most of them are lower-middle class and poor, so they are buying fans, lights, television sets,” he said.
Power plants on alert
India’s coal-fired power stations had on average four days’ stock at the end of September, the lowest in years.
More than half the plants are on alert for outages and the government is mulling bringing idled power stations back into operation. Coal accounts for nearly 70 per cent of the country’s electricity generation and around three-quarters of the fossil fuel is mined domestically.
State-run giant Coal India, which produces most of the country’s supply, has said it is on a “war footing” to ensure adequate deliveries.
On top of a rise in demand as Asia’s third-largest economy rebounds following a coronavirus wave, recent monsoon rains have flooded mines and disrupted transport.
This pushed up prices sharply for coal buyers, including power stations.
Buying coal abroad is expensive because international prices have also soared.