In an exclusive report, it has been revealed that imported coal-based power plants are now obligated to operate at full capacity until June 30, 2024, as per an extension of the emergency clause of the Electricity Act, 2003. This directive, issued by the Ministry of Power, comes in response to a substantial increase in electricity demand, a shortfall in the supply of domestic coal, and decreased hydropower generation.
This unprecedented eight-month extension has been prompted by the government’s anticipation of a peak power demand of 256.53 GW for the year 2024-25, given that this year’s peak demand reached a historic 239.978 GW on September 1. However, this surge in demand led to a concerning power shortage of 10.745 GW on the same day.
The Ministry of Power’s order, dated October 23, justifies this decision due to the necessity of ensuring a stable power supply in the face of rising demand, dwindling domestic coal resources, and reduced hydropower availability. This order is in accordance with Section 11 of the Electricity Act, 2003, which empowers the government to direct power-generating companies to maintain their output under extraordinary circumstances, and it provides for mitigating any financial impact on the generating companies as deemed appropriate by the commission.
This directive affects at least 15 imported coal-based power stations, including Coastal Gujarat Power Ltd, Adani Power Mundra Ltd, Essar Power Gujarat Ltd, JSW Ratnagiri Ltd., Tata Trombay Ltd., GSECL Sikka Ltd., IL&FS Tamilnadu Power Company Ltd, Muthiara-Coastal Energen, and Udupi Power.
Furthermore, coal stocks at domestic thermal power plants have fallen below the comfortable 33-35 million tonne (MT) level that was maintained from March to August this year, registering only 18.55 MT on October 23. Among the 165 domestic coal-based thermal power plants in the country, 75 had critical stock levels as of that date. It should be noted that data after October 23 is pending compilation.
Government officials emphasize the pivotal role of coal-fired thermal power plants in 2024-25, with expectations that they will contribute up to 70-75 percent of the total energy mix during peak demand hours. This is primarily due to India’s ongoing lack of round-the-clock renewable energy generation, attributable to a deficiency in energy storage systems.
