Power Min asks imported coal-fed thermal plants to run at full capacity till Dec

The Ministry of Power has ordered all the thermal power plants that run on imported coal to operate at 100% capacity till December 31, 2024, amid a ratcheting up of electricity demand in the country. The ministry had invoked Section 11 of the Electricity Act earlier to avert power shortage.

In a letter to 15 firms operating imported coal-based plants, the ministry emphasised the critical need for power supply cut-down so as not to disrupt electricity supply, as peak power demand this summer will reach almost 260 GW, yet the previous record was achieved in May 2024 with around 250 GW.

The order has been issued at a time when the India Meteorological Department predicts above-normal temperatures over most parts of the nation, which would extend their power resources. The ministry had first implemented this order in February 2023 for the sake of avoiding power outages in case an increase of demand is experienced.

Originally scheduled from March 16 to June 15, the order has been stretched multiple times, most recently pushing an operational mandate to June 30, 2024. Unseasonable rains earlier this year helped slightly ease demand because fewer cooling appliances are in use.

Those affected are major units such as Tata Power and Adani Power's Mundra, Essar Power at Salaya, and JSW's Ratnagiri and Torangallu projects. The ministry had been emphasising the need for blending of domestically sourced coal with imported fuel to increase availability and coal stocks at generating stations.

Ensuring the right amount of power generated is also being considered as a strategic move that will cause less financial impact due to higher imported coal costs cost pass-through provisions and excess power selling in energy exchanges. Of course, the power plants must continue their operation during peak demand hours to prevent any possible power shortages.