Coal Crisis: Nearly 40% of Indian Power Plants Face Severe Fuel Shortages

New Delhi: Nearly 40% of India's coal-fired power plants are operating with critically low fuel ​stocks due to a surge in power demand amid ‌hotter-than-usual weather linked to El Niño, government data showed on Monday.

The number of power plants with critically low coal stocks of less than ​25% of the required inventory or only able to ​generate power for less than three days rose sharply ⁠to 74 as of September 19 from about 60 ​plants last week, data from the Central Electricity Authority that is ​updated daily showed.

India's peak power demand, a measure of the maximum electricity requirement, has been hovering between 230 gigawatts and 250 gigawatts in the ​past week.

Peak power demand hit an all-time high of ​270.70 gigawatts in May.

The decline in power plant stocks appears to be a ‌temporary ⁠logistical issue rather than a sign of any structural supply constraints, Crisil analysts said.

India's coal and railway ministries said in early September they were increasing supplies to the plants after erratic ​monsoon rains had ​impacted shipments.

Renewable ⁠power generation rose about 21% between April and August, but due to the intermittent nature of ​clean energy, coal-fired power continued to play ​a critical ⁠role in meeting round-the-clock demand, Crisil said.

Meanwhile, Indian power producers' coal imports in August rose to a 15-month high as a ⁠heatwave ​boosted electricity demand while hydroelectric power ​generation remained subdued, prompting utilities to turn to costly overseas supplies, Reuters reported last ​week.