A majority of the country’s thermal power plants are holding less than seven days coal stock, but the reason seems more to do with higher generation.
Industry was anticipating suppressed supplies of coal after the Supreme Court verdict ordered blocks to be de-allocated by March 31, 2015.
Between September 25 and October 8, an average of 60 out of 104 thermal power plants had less than seven days of coal stocks. This also includes four to five new plants and those with no power purchase agreements.
Looking at the coal stock data on a standalone basis indicates a supply constraint. But, the power generation data provide the real picture. Data with the Central Electricity Authority up to September 30 reveal that generation from thermal power plants has been higher than the target production on all the six days.
Generation peaked from thermal power plants on September 29, when thermal power units produced 2,499.95 million units as against a target production of 2,231.44 million units.
In fact, data from National Load Dispatch Centre indicate that the higher generation has also helped bring down peak electricity shortage in the country. While on August 28, peak shortage was at 9,110 MW on September 28 peak shortage came down to 2,726 MW. “There has been a pressure on thermal power plants to generate more as demand has increased. This is why plants are using more coal which is being reflected in the coal supply position,” an industry observer said.