Winter keeps India’s power demand elevated

NEW DELHI :India’s peak power demand has remained elevated over the past week amid the winter chill, keeping it above the 200 GW level since 19 December.

On Monday, peak power demand stood at 206.421 GW, show data from the Grid Controller of India.

Electricity demand shoots up in winters due to the use of heating appliances and geysers. Although consumption of coal at domestic coal-based power plants has gradually increased this month, India’s coal stock situation is comfortable.

Data from the Central Electricity Authority showed that on 20 December consumption of domestic coal at these plants stood at 2.16 million tonnes, against 1.86 million tonnes on 3 December. On 20 December, 2.24 million tonnes of domestic coal was received at the plants.

Sector experts are of the view that in the near term there would not be a shortage of coal as the government has mandated 6% blending of imported coal till March.

Mint recently reported that amid a consistent rise in power demand, the Union power ministry was set to review its policy of mandating power generation companies to blend 6% imported coal in January.

The review will determine whether to continue the blending requirement beyond March and consider increasing the blending percentage in response to growing demand and fluctuating coal stocks.

With prospects of demand further picking up in March-April, the government has taken a number of steps to ensure that the growing demand is met. The power ministry has also directed imported coal-based power plants to operate at full capacity till June amid prospects of continued high demand.

Fitch Ratings has estimated India’s power demand to grow 7% year-on-year in FY24, after having grown 7.1% in the first half of this fiscal year. During August-October, power demand had increased around 20% every month.

Peak power demand this year surged to 239.9 GW on 1 September amid erratic rains as well as dry spells due to the El NiNo phenomenon. By the end of September, the thermal coal inventory fell to around 8.4 days, against the usual 18 days. Currently, coal stock at the power plants is adequate for running the plants for 12 days.

Due to the increasing demand, the government also plans to add 12 GW of coal-based power generation capacity in the current fiscal year.

Further, by 2032, a total of 75 GW new thermal capacity is likely to be added. According to data from the power ministry, as of 31 May, India’s installed thermal power capacity stood at 205.23GW.

India’s peak electricity demand is expected to reach 277 GW by 2027 and to 366 GW by 2032, Rakesh Kumar, secretary, Central Electricity Authority, said recently.