Coal news and updates

Indian power cos’ Oct coal consumption up 7% m-o-m

India Coal Market Watch

November 30: Coal consumption by India’s power utilities monitored by the Central Electricity Authority (CEA) in October 2015 were at 50.58 million tons (mt) against 47.10 mt in September, recording a 7.38% month-on-month increase, as per data available with ICMW.

 Coal consumption by the power plants monitored by this central agency during the first seven months of 2015-16 (April-October) were at 315.63 mt compared to 307.86 mt seen in the same period in the previous fiscal, edging up 2.52%. This marginal growth seems to be reversing a trend seen so far of poor demand for electricity in the country as distribution companies have failed to purchase power due to their weak financial conditions.

Consumption of the fuel by the power plants in entire 2014-15 stood at 531.48 mt and the current trend indicates that the consumption may range around that level in 2015-16 as well.

Despite a stagnation in coal consumption, the generation of power by coal-fired plants during the first seven months of 2015-16 stood at 591.85 billion units (BU), up 28.84% compared to 459.36 BU during the corresponding period of 2014-15.

That the power plants managed to generate 28.84% increased electricity during the first seven months of 2015-16 despite a marginal 2.53% increase in coal consumption indicates that their efficiency has increased.

In fact, in October 2015, the monitored plants generated a total of 79.13 BU indicating a jump of 14% over 69.41 BU generated in the same month in 2014.

Meanwhile, specific coal consumption (receipt, consumption and coal stock includes coal from all sources) in the first seven months of the current fiscal stood at 0.66 kg/kWh against 0.69 kg/kWh, dropping 4.35% year-on-year.