Key Takeaways
- India’s coal-fired electricity output growth slowed in August.
- Renewable power generation increased by 42.1% year-on-year.
- 45 Indian coal power plants face critical low fuel levels.
India’s coal-fired electricity output growth slowed in August, according to data posted on Grid-India’s website. The country’s total electricity generation rose 11.6% year-on-year to 180 billion kilowatt-hours (kWh) as an extended heatwave and below-average rainfall increased demand for cooling.
Renewable power generation, including solar, wind, and small hydropower projects, saw a significant boost, jumping 42.1% year-on-year to 35.14 billion kWh. This marked a substantial increase from the previous month, highlighting the growing importance of renewable energy sources in India’s power sector.
Despite the rise in renewable energy, coal-fired generation still played a crucial role. It rose 11.3% year-on-year to 116.28 billion kWh, following a 13% increase in July and a 14% rise in June. Analysts suggest that even as solar and wind generation surge, non-solar-hour peak demand remains very high, driving coal usage.
The data also revealed that 45 Indian coal power plants are facing critical low fuel levels, with coal inventories at 46 power plants being disrupted by patchy monsoon rains. This has pushed coal inventories to critically low levels, affecting the operational capacity of these plants.
Manoj Kumar, an analyst with the Centre for Research on Energy and Clean Air, commented, 'Even as solar and wind generation surge, non-solar-hour peak demand remains very high, driving coal usage.' This statement underscores the ongoing reliance on coal despite the growing renewable energy sector.
The extended heatwave and below-average rainfall have also impacted hydropower generation, which fell 16.7% to 21.5 billion kWh in August. This reduction in hydropower, combined with disrupted coal mining and supplies, has further strained the power sector’s ability to meet peak demand.
The government data indicates that the coal supply chain has been disrupted, with 46 power plants reporting critical low fuel levels. This situation highlights the challenges faced by the power sector in balancing the increasing demand for electricity with the growing renewable energy sources.
The data from Grid-India’s website provides a snapshot of the current state of India’s power generation, showing a mixed picture of growth in renewable energy and continued reliance on coal. As the country continues to transition towards cleaner energy sources, the balance between these two sectors will remain a critical issue.
Even as solar and wind generation surge, non-solar-hour peak demand remains very high, driving coal usage.
Manoj Kumar, Analyst with Centre for Research on Energy and Clean Air
