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India’s coal-fired power generation in August rose 23.7%, utilities asked to import fuel

India’s coal-fired power generation in August rose 23.7%, utilities asked to import fuel

 


CHENNAI (Reuters) – Coal-fired power generation in India rose 23.7% in August due to a surge in demand for electricity, an analysis of power grid data has shown, pushing the government to ask utilities to import coal despite the world’s fourth largest reserves.

FILE PHOTO: A worker shovels coal into a supply truck in a yard on the outskirts of Ahmedabad, India October 25, 2018. REUTERS / Amit Dave / File Photo

Data from the Central Electricity Authority showed that more than half of the 135 coal-fired power plants had less than a week of coal supply, of which 50 plants had less than three days of coal. Six power plants ran out of coal.

Global electricity generation rose 16.1% in August from a year earlier, Reuters analysis of daily load shipping data by the federal grid regulator POSOCO showed.

Coal-fired electricity accounts for over 70% of India’s electricity production, with state-owned Coal India Ltd accounting for over four-fifths of coal production.

Thermal power plants, which can import coal for blending, could explore (ways) to increase coal imports to overcome the current crisis, the Energy Department said in an Aug. 30 notice, seen by Reuters .

India, the world’s second largest importer of coal, imports mainly from Indonesia, Australia and South Africa. The government is trying to reduce imports.

In the first eight months of 2021, coal-fired power generation grew 19.3 percent, faster than a 14.5 percent growth in renewable power generation, according to data from POSOCO.

The share of coal-fired production during the period increased to 72.9%, in line with 2019 levels but above 69.2% in the same period of 2020. Global energy consumption increased fell in 2020 amid coronavirus lockdowns, but increased as restrictions eased.

An Energy Ministry official said the installation of new renewable energy sources had been slower than expected, at a time when demand for electricity had increased by more than 13%.

Some states that have signed expensive green energy deals have also bought electricity from exchanges, said the official, who declined to be named because he was not authorized to speak publicly.

Reporting by Sudarshan Varadhan; Editing by Kim Coghill and Edmund Blair

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