India might meet another power crisis in July-Aug: CREA

According to the Centre for Research on Energy and Clean Air (CREA), a lower pre-monsoon coal stock at thermal power plants in India might result in another power crisis in July-August.

The current coal stock is 13.5 million tonnes (mt) at pithead power stations and 20.7 mt at all power plants in India.

According to data, coal power plants cannot address even a minor spike in the power demand, and there is a need to plan for coal transportation in advance.

The Central Electricity Authority of India (CEA) has indicated a peak high power demand of 214 GW in August. Additionally, the average energy demand could increase more than in May to 1,33,426 million units.

CREA said that the onset of the southwest monsoon would also impact mining and transportation of coal from mines to power stations. If the coal stocks are not replenished to the adequate levels before the monsoon, the country might face another power crisis in July-August 2022.

It added that the recent power crisis was not due to coal production but distribution and official apathy. Coal transportation and management were not sufficient to handle the increased power demand. However, the trends show that thermal power stations were not sufficiently stocked despite adequate coal mining.

India witnessed 777.26 mt coal production in FY21-22 against 716.08 mt in FY21, with an increase of 8.54%.

An analyst at CREA, Sunil Dahiya, said that India had a total mineable capacity of over 1,500 mt in FY21-22, while the total production stood at 777.26 mt, about half of its production capacity. If there was a coal shortage in the country, coal companies had the option of increasing their production.

According to a report, coal stock at thermal power stations has been reducing since May 2020. The main reason for the power crisis last year was the inaction of power plant operators in sufficiently stocking up coal before the onset of the southwest monsoon. The monsoon floods in the coal mines hamper the production and transport to power stations.

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