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India coal stockouts leave 45 power plants below required inventories

Inventory at India’s power plants fell 15.5% between Aug. 1 and Aug. 23 as coal deliveries lagged consumption, Reuters said, pushing domestic coal prices higher.

Reported · Written up by our desk · Energy

As electricity demand rises in India amid El Nino-driven heat and disrupted monsoon conditions, 45 coal-fired power plants are operating with critically low coal stocks, according to government data cited by Reuters.

Reuters reported that the Central Electricity Authority data show the affected plants have inventories below 25% of required levels, or coal stocks insufficient for three consecutive days of power generation, with the count rising to 45 from 31 at the end of July.

Monsoon-related disruptions have tightened near-term access to domestic coal and slowed transportation from coal-producing states to power plants, worsening the shortfall.

Commodity consultancy BigMint said domestic coal prices rose this week, and it estimated that power plant coal stocks declined by 15.5% between Aug. 1 and Aug. 23 as coal burn continued to outpace supplies.

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