India’s electricity demand has soared to new records, bringing back fears that the blackouts that had eased in recent weeks could resume. On Thursday, peak electricity use reached a record 210.8 gigawatts, surpassing the previous record seen the day before. The power ministry estimates that the additional demand may prompt power plants to import coal to meet it.
The increase in demand has been attributed to rising temperatures and increasing industrial activity and has put enormous pressure on domestic supplies of coal, which produces about 70% of the country’s electricity.
Rupesh Sankhe, vice-president, Elara Capital India Pvt in Mumbai, said, “The high power demand scenario is here to stay. We are prepared for higher power prices either due to costly coal imports or the risk of blackouts.”
India’s power plants are operating with coal reserves of around 9 days, which is about a third of the requirement. Stocks have risen in recent days, with increased renewable power generation easing the burden on coal plants, but the situation is not comfortable just weeks after the widespread outages of earlier heatwaves.
Adding to the power sector woes, the coming monsoon rains could flood coal mines within weeks, disrupting fuel production and shipments. Last autumn, the country saw its worst coal and power crisis in years, caused by a number of factors, including a prolonged rainy season.