The government has extended the mandate for power producers to import 6% of their coal requirements until June 2024 to avoid power shortage during the polls. This decision comes amidst domestic supply constraints and logistical bottlenecks that hamper the movement of coal via the railway network. The peak power demand is expected to surge significantly during the summer months, reaching up to 260 gigawatts (GW), an all-time high.
Coal Supply Challenges
The Ministry of Power, in a notification dated March 4, announced that the government has extended the mandate for power producers to import 6% of their coal requirements until June 2024. This provision was initially introduced in October 2023 and was supposed to end in March 2024. However, with domestic coal movement constrained due to various logistics issues associated with the railway network, the import provision serves as a crucial stopgap measure to bridge the shortfall in coal supply.
The ministry also observed that to meet the demand in the crucial summer months and ensure uninterrupted supply, adequate reserves in domestic coal-based plants should be maintained by all central/state gencos and IPPs. Data showed peak power demand during the summer of 2023 touched 243GW against a projection of 229GW. The ministry estimated the country’s electricity demand to touch 229GW during the summer of 2023, but it did not reach the projected level in April-July due to unseasonal rainfall.
Power Demand Spike
The peak power demand is expected to surge significantly during the April-June period, with projections indicating a potential peak demand reaching up to 260 gigawatts (GW). The looming power demand spike underscores the urgency of addressing the coal shortage to avert potential disruptions in electricity supply, especially during the crucial summer months when energy consumption typically peaks.
Adding to worries, the India Meteorological Department (IMD) said India is likely to experience a warmer start to the summer season this year, with El Nino conditions predicted to continue through the season. Besides, a drop in reservoir level will impact hydel power generation in summer. The reservoir level is 17 per cent lower at 73.29 billion cubic metres (bcm), as per the latest data of March 7 from the Central Water Commission (CWC). The levels are also nearly 3.6 percentage points below the 10-year average of 76.06 bcm due to last year’s late monsoon, scanty winter rains and a lack of snowfall.
Election Implications
The government has extended the mandate for power producers to import 6% of their coal requirements until June 2024 to avoid power shortage during the polls. The Modi government has started firefighting measures so that the shortage does not affect BJP’s bid for a third term in power. Power supply is a key issue for voters, especially in rural areas where frequent outages affect livelihoods and daily activities. The government is also facing criticism from opposition parties and environmental activists for relying on imported coal instead of promoting renewable energy sources
Recent Blog : Karnataka Bans Artificial Colors in Gobi Manchurian