The Ministry of Power has decided to extend the blending of imported coal in power generation plants. This direction was issued on 25th October, 2023.
It may be recalled that the initial advisory issued on September 1, 2023, had recommended a 4% blend of imported coal by weight until March 2024. However, given the persistently rising trend in power demand and the shortfall of domestic coal, this percentage is now being increased.
The power supply situation in the country has been carefully reviewed, revealing a significant gap between the receipt and consumption of coal (both domestic and equivalent domestic of imported coal) from September 1 to October 9, 2023, amounting to 12 million metric tons. This discrepancy is a direct result of the inadequate supply of domestic coal, which has prompted the Ministry of Power to take proactive measures to ensure uninterrupted power generation.
Additionally, a notable 11% decline in hydroelectric power generation has been reported in the first half of fiscal year 2024, compared to the same period in the previous fiscal year. This drop is attributed to variable monsoon rainfall and approximately 2 gigawatts of hydro capacity being offline due to recent floods in Sikkim. Reservoir levels in various regions across the country, such as Northern, Eastern, and Southern regions, are lower compared to the previous year, as of October 9, 2023, resulting in a reduced reservoir energy content. This, in turn, has placed an increased burden on coal-based thermal power generation.
To ensure a consistent and uninterrupted power supply across the country, the Ministry of Power, in consultation with the Central Electricity Authority (CEA) and Grid India, has made the decision to increase the blending of imported coal to a minimum of 6% by weight. Power generation companies (Gencos) are encouraged to continuously monitor their coal stock positions and opt for blending in accordance with their requirements, particularly when the shortfall in domestic coal supply exceeds 6%.
It’s important to note that all other conditions outlined in the advisory dated September 1, 2023, will remain unchanged.
