Coal news and updates

Imported coal-based power plants told to run at full capacity till September

The power ministry on Monday mandated imported coal-based power plants to run at full capacity till September 30 to meet the high power demand amidst soaring temperatures across the country. The ministry had in February directed these plants to run optimally from March 16 to June 15 under Section 11 of the Electricity Act. Monday’s directive effectively extends this timeline by over three months.

Power demand, though earlier projected to peak around 229 GW in April, reached 216 GW in the month, and 221 GW in May, thanks to the turn in weather conditions. However, rising temperatures in the last two weeks have pushed the demand up. On June 9, India recorded the highest ever peak power demand at 223 GW, though still lower than the projected peak.

There is also the challenge of monsoon in the coming months, where domestic coal production and evacuation usually declines, for which imported coal-based plants can come to the rescue. Section 11 of the Electricity Act provides that the government may, in extraordinary circumstances, ask a generating company to operate and maintain any station in accordance with its directions.