India’s power demand crosses 260 GW in September heat, coal stocks tighten

New Delhi: India's peak power demand crossed 260 GW on September 8 after touching 257 GW a day earlier, with this demand remaining largely above 249 GW so far in September, an unusually high level for the month.

Last year, peak power demand in the same period was between 198 GW and 211 GW. The sultry weather and deficient rainfall as El Nino impact lifted cooling and irrigation-based need. "The deficient rain in some parts of the country has led to more demand for irrigation. This demand is coming mostly in morning hours," a government official said.

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The hydro power generation between September 1 and September 8 was 6.04 billion units, down around 10.3% year-on-year. For comparison, India's peak power demand had touched 271 GW in May, as summer saw higher than normal temperatures and more heat wave days this year. The sustained demand has also led to pressure on thermal power projects as hydro generation slowed, especially in the non-solar hours.

Around 58 thermal power plants have been operating with critically low coal inventories, because of higher demand and faster depletion of the fuel, along with seasonal slump in supplies led by rain in coal bearing areas. This has prompted the government and coal companies to increase supplies and improve rake loading. Coal stock at domestic coal-based power plants are at around 23 million tonnes.

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However as rain receded, as of September 6, coal rake loading to the power sector had risen to 444 rakes a day from 370 on September 3, according to the coal ministry. Stocks are expected to start moving further up in the next few days, a government official said. The combination of high demand and tighter plant level coal inventories leaves thermal generators with less room for prolonged maintenance or supply disruptions.