Thermal power outage due to low coal stocks reduces

The country’s thermal power plants had an average coal stock of four days on October 12, as against recommended inventory levels of 15-30 days based on the distance of plants from the source of coal.

By: ENS Economic Bureau
New Delhi | October 14, 2021 03:45 AM IST

2 min read

Low stocks have contributed to power shortages across a number of states including Punjab, Rajasthan and Bihar that are facing power cuts due to inadequate supplies. (File)

The total thermal power capacity under outage due to low coal stocks fell to 6 GW (Gigawatts) on Wednesday from 11 GW on Tuesday, according to a Power Ministry release.

The country’s thermal power plants had an average coal stock of four days on October 12, as against recommended inventory levels of 15-30 days based on the distance of plants from the source of coal. A spike in power demand as the economy recovers from the Covid-19 pandemic and high international coal prices, coupled with supply side issues and inadequate coal procurement by plants in the April-June period, have contributed to low coal inventory. Low stocks have contributed to power shortages across a number of states including Punjab, Rajasthan and Bihar that are facing power cuts due to inadequate supplies. State discoms have been forced to buy power on exchanges at much higher rates to meet shortfalls.

Purchase bids in the Day Ahead Market on the India Energy Exchange (IEX) on October 13 were for 392,210 MWh (Megawatt-hours) up from 173,624 MWh a month ago. The average market clearing price on the exchange was Rs 13.13 per unit (KWh) up from Rs 2.62 per unit a month ago.

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