Government Directs Coal Power Plants to Boost Production Amid Rising Demand

The central government has ordered more than 100 captive coal-fired power plants to run at full capacity from October 1 until the end of the year to deal with a spike in power demand. The Ministry of Power used emergency rules under the Electricity Act for this order, which affects plants that can produce at least 50 megawatts. The goal is to prepare for higher electricity needs in the upcoming months, according to the order dated September 25. Right now, nearly 40 percent of coal-fired plants are running low on fuel because high temperatures driven by the El Niño climate pattern have pushed up power usage. These captive plants mostly supply power to industrial units like steel mills, cement factories, aluminium smelters, and oil refineries.

Sales And Rules

The Power Ministry has told plant owners to sell any extra electricity they produce through power exchanges. The directive covers 112 plants owned by major companies such as Tata Steel, Vedanta, Hindalco Industries, JSW Steel, UltraTech Cement, Reliance Industries, Indian Oil, Bharat Aluminium, Hindustan Zinc, and Nayara Energy. Plants must submit weekly reports to the Central Electricity Authority about their power generation, self-consumption, sales, available capacity, and coal levels. In addition, the Ministry extended an older emergency rule that forces Tata Power's imported coal plant in Mundra, Gujarat, to run at maximum capacity until December 31 due to the same demand pressures. Section 11 of the Electricity Act gives the government power to issue such directions to generators during unusual situations.