India to encounter another power crisis in July-August: Report

It also stated that the recent power crisis in the country was due to "distribution and official apathy" and not coal production.

Digital Desk: Independent research organisation, Creating Resources for Empowerment in Action (CREA) has said that a lower pre-monsoon coal stock at thermal power plants in India is suggestive of another power crisis in July-August. The current coal stock stands at 13.5 million tonnes at pithead power stations and 20.7 MT cumulatively at all power plants across the country.

As per data from official sources, the coal power plants are not in a position to address even a minor spur in power demand and that there is a need to plan for coal transportation in advance.                                                  

The Central Electricity Authority of India (CEA) has predicted a peak power demand of 214 GW in August. Additionally, the average energy demand could also increase to more than what it is in the month of May.

CREA said that the arrival of the southwest monsoon will further hamper mining and transportation of coal from mines to power stations. If coal stocks are not replenished to sufficient levels before the monsoon, the country might be witnessing yet another power crisis in July-August 2022.

It also stated that the recent power crisis in the country was due to "distribution and official apathy" and not coal production.

It is apparent from the data that coal transportation and management were not enough to keep up with the increased demand from the power sector. "The trends show that thermal power stations were not sufficiently stocked in spite of adequate coal mining.

India witnessed a record coal production of 777.26 million tonnes (MT) in the financial year 2021-22 as against 716.08 MT in FY21, an increase of almost 8.55 percent.

The country had a total mineable capacity of over 1,500 MT in FY 21-22 while the total production stood at 777.26 MT, approximately just half of its production capacity. Therefore, if there was a real coal shortage, coal companies had the option of simply increasing production, Sunil Dahiya, an analyst at CREA, explained.

"The prime reason for the power crisis previous year was mainly because of the inactiveness of power plant operators to stock adequate coal before the onset of the southwest monsoon. The timing is crucial as the monsoon floods coal mines, causing impediment to the production and transport to power stations," the report stated.