The coal demand in India is heading for 11.5% growth during the April-June quarter, driven by the projected increase in power generation and the rise in energy consumption during the warmest months.
Coal demand in India driven by higher power generation
In this context, the country’s power plants project a generation of up to 341 billion units, representing a significant increase compared to the same period last year. This growth is partly due to a lower comparative base and the need to meet rising energy consumption.
Furthermore, total coal demand could reach 233 million tonnes in the quarter, consolidating its role as the primary energy source to ensure the stability of the electrical system.
Record inventory levels ensure supply
On the other hand, India currently has a historic level of coal inventories. Total reserves, including stocks in transit and at pitheads, reach 224 million tonnes, far exceeding previous year records.
Likewise, power plants maintain nearly 54 million tonnes in stock, providing a safety margin against potential peaks in electricity demand.
Extreme heat increases pressure on the power grid
Looking ahead to summer, weather forecasts anticipate above-normal temperatures across much of the country. This scenario increases the use of cooling systems and raises energy demand.
Consequently, peak electricity consumption could reach around 271 GW during May and June, compared to the 243 GW recorded last year. This increase reinforces the need to maintain a constant energy supply.
Coal remains key in the energy matrix
Despite the sustained growth of renewable energy, coal-fired power plants continue to be the backbone of the electrical system in India. Their ability to provide power continuously is essential, especially given the potential unavailability of between 8 and 10 GW of gas-based capacity.
In this scenario, coal maintains its relevance as a reliable source to meet energy demand and ensure the stability of the electricity supply.
Source: The Economic Times
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