India's Coal-Fired Power Plants Boost Fuel Inventory by 3 Days to Meet 270GW Summer Demand

As the summer season approaches, India is preparing for a significant surge in electricity demand, with projections indicating that the country's power needs could reach an unprecedented 270 gigawatts (GW). This anticipated peak has prompted coal-fired power plants across India to bolster their preparations, ensuring they are well-equipped to meet the heightened demand.

According to data compiled on May 19, the fuel inventory levels at India's coal-fired power plants are currently higher than they were at the same time last year. This strategic stockpiling is a proactive measure to mitigate potential shortages and ensure a stable power supply during the peak demand period. The increased inventory levels reflect the power plants' readiness to handle the anticipated surge in electricity consumption, which is typically driven by the intense heat and increased usage of air conditioning units during the summer months.

The heightened preparations by coal-fired power plants are crucial for maintaining the reliability of India's power grid. With the country's electricity demand expected to soar, the power plants are taking necessary steps to ensure that they can generate sufficient electricity to meet the needs of both residential and industrial consumers. The proactive measures, including the increased fuel inventory, are aimed at preventing power outages and ensuring a steady supply of electricity throughout the summer season.

Non-pit power plants, which rely on land transportation to obtain fuel from distant coal mines, have slightly higher inventory levels compared to pit power plants. These non-pit power plants account for nearly three-quarters of India's coal-fired power plant capacity, with average inventory levels sufficient to operate the plants for an additional three days compared to 2024. Power plants using imported coal also have higher fuel inventory levels than last year, although the difference is only about half that of plants using domestically produced coal.

In addition to strengthening fuel management, India has added 3 GW of coal-fired power plants over the past 12 months to cope with the surge in electricity demand. Thermal power plants, including gas-fired plants, play a crucial role in meeting peak demand by providing electricity when needed. During the potential electricity peak in June, major coal-fired power companies such as NTPC, Adani Power, Torrent Power, and JSW Energy will need to operate their plants at near full capacity, higher than usual levels.

These preparations are essential for maintaining the reliability of India's power grid and ensuring that both residential and industrial consumers have access to a steady supply of electricity during the peak demand period. The strategic stockpiling of fuel by coal-fired power plants is a testament to the importance of coal in India's energy mix. Despite ongoing efforts to transition towards renewable energy sources, coal remains a critical component of the country's power generation infrastructure. The increased fuel inventory levels at coal-fired power plants underscore the continued reliance on coal as a primary source of electricity, particularly during periods of high demand.