Coal shortages, severe heatwave together deepen power crisis, other factors looming too
India Today
At a time when power companies were expected to boost power generation to meet the increased demand, coal stocks were below the critical level of 25 per cent in 94 operational thermal plants in India, as of May 1.
Coal shortages in India’s power plants unfortunately coincided with several regions facing a severe heatwave that significantly pushed up power demand. For instance, Delhi recorded a record high power demand of 6,194 MW on Monday, May 2. At a time when power companies were expected to boost power generation to meet the increased demand, coal stocks were below the critical level of 25 per cent in 94 of the 165 operational thermal plants of India, as of May 1.
However, coal shortage is only one of the many problems looming over India’s power sector. From power generation companies to distribution companies, from the transmission and commercial losses to high distribution costs, the power sector is overburdened on all fronts.
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Urbanisation happened at the highest pace in the last decade. With villages contracting and urban spaces rapidly expanding, demand for electricity increased to match its change in lifestyle. Though the availability of electricity now matches the requirements, coal remained the king of power generation in India.
India has a high degree of reliance on imported energy even though renewable energy can play a vital role and depress overall tariffs. India imported 103 MT of coal in the financial year 2012, which more than doubled to 215 MT in the financial year 2021, according to the Directorate General of Commercial Intelligence and Statistics.
The expansion of green energy is very slow in the country and the energy mix is largely tapered towards coal-generated power. In the financial year 2012, power generated through non-fossil fuels accounted for 23.6 per cent. It merely rose to 25.3 per cent in the financial year 2021.
Fossil fuel subsidy is an important factor behind the slow growth of green energy. Subsidies for coal remain greater than for renewables.
