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India preps for summer power surge, power ministry mandates coal blending till June 2024

The decision, approved by the Minister of power and new and renewable energy, R.K.Singh comes in the wake of a projected peak demand of up to 250 GW during the upcoming summer season and observed supply constraints in domestic coal.

New Delhi: In a strategic move to ensure uninterrupted power supply across India, the ministry of power has extended its advisory to all electricity generation companies, including Independent power producers (IPPs), to import coal for blending purposes till June 2024 instead of March.

The decision, approved by the Minister of power and new and renewable energy, R.K.Singh comes in the wake of a projected peak demand of up to 250 GW during the upcoming summer season and observed supply constraints in domestic coal.

“In order to meet the power demand during the crucial summer months and to ensure uninterrupted power supply across the country, adequate coal reserves in domestic coal-based (DCB) plants need to be maintained by all the Central/ State Gencos and independent power producers (IPPs). The Ministry of Power has, therefore, decided to extend the advisory dated October 25, 2023 till June 2024,” the ministry of power said in an order issued on March 4.

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The blending percentage of imported coal for DCBs has been retained at 6 percent, it added.

Accordingly, all the GENCOS (Central/State and IPPs) are to firm up their imported coal contracts for ensuring supplies till June'2024. Further, GENCOs must also continuously review the stock positions of their domestic coal based (DCBs) plants and opt for blending as per the requirements so that the adequate coal stocks are maintained at the thermal power plant level.

Last week, the India Meteorological Department forecasted that most regions of the country would experience higher than usual maximum temperatures through May, which has led to apprehensions about a potential surge in electricity consumption for cooling needs.