Power Plant Coal Reserves Drop 24 Percent in September Amid High Demand

Coal reserves at domestic power plants dropped by nearly 24 percent since the start of September, driven by an unusual surge in electricity demand and lower hydropower output.

Stock Levels And Critical Plants

As of September 27, coal stocks stood at 19.2 million tonnes, which is 64 percent below the required level of 53.7 million tonnes. This is a sharp drop from 25.4 million tonnes on September 1. Compared to the same time last year, stocks are down by about 55.5 percent. At least 72 out of 168 domestic coal-based power plants now sit at critical fuel-stock levels, meaning their coal is below 25 percent of the required normative stock.

Emergency Measures

The Centre invoked Section 11 of the Electricity Act last week to handle the shortage, ordering about 112 captive coal-fired power plants to run at maximum capacity from October 1 to December 31. Captive power plants are built by industrial companies to supply electricity for their own use rather than the public grid. From September 1 to September 26, coal-based generation rose by 15.5 percent to 96,718.83 million units compared to the same period last year. Meanwhile, hydropower generation fell by 15.5 percent to 16,483.18 million units due to deficient rainfall and El Niño weather conditions.

Expert Views

Ankit Jain from ICRA Ltd said monsoon disruptions hurt domestic coal supply, mining, and evacuation, while high plant use put pressure on inventory. Alekhya Dutta from TERI noted that invoking Section 11 acts as a buffer to prevent supply shortages and keep the power system reliable during high demand and low renewable output.

Context

India relies heavily on coal for its primary electricity generation, making thermal power plants crucial during periods when extreme weather spikes cooling demand while reducing green energy output. Government emergency powers like Section 11 are occasionally used to force private or captive units to support the national grid when public supplies face sudden stress.