tamperfinderDue to a lack of coal supply, the nation is currently experiencing a severe power shortage. In just eight days in April, there have been more than 100 million units of energy shortages. Distribution companies in many states are now required to regulate electricity as a result. India is the second-largest producer and consumer of coal in the world and has the fourth-largest global coal reserves. The central government affirms that policy changes in the past few years have led to an increase in coal production and a decline in imports.
The central government’s claims are undermined by the country has experienced its second coal shortage crisis in ten months, despite an increase in GDP. It is clear that there would not have been a second shortage in April if the October warning had been respected enough. Before the monsoon season, or before April, coal inventories remain vigilant. After the end of May, the country enters its monsoon season. In these circumstances, the coal stock in April was woefully inadequate. The overall demand for electricity in April 2022 has been 207 gigawatts. After Covid, demand for electricity in the nation’s industrial and commercial sectors rose with the arrival of summer and other factors.
The massive demand in April indicates that this fiscal year’s peak demand will rise to 210–215 gigawatts. Coal stock has dropped significantly below 25% of the necessary stock at more than 100 thermal power plants that supply 70% of the nation’s energy needs. More than 50 thermal power plants’ stocks dropped below 10%. Power regulations have already been implemented by states like Andhra Pradesh, Gujarat, Maharashtra, Jharkhand, Bihar, Haryana, Uttarakhand, Kerala, Delhi, Punjab, and Tamil Nadu. Jharkhand averaged (10–12%), followed by Andhra Pradesh (10%), Uttar Pradesh (8–10%), Madhya Pradesh (6%) and Haryana (4%).
The power outages have been particularly severe in states with a high reliance on Thermal power plants. Such as announcing a two-day factory power holiday Many distribution companies used load shedding instead of buying as much expensive power from generators during the power crisis. An additional crisis has emerged as a result of the slowdown in the payment of arrears to generators by financially troubled supply companies. Arrears owed by distribution companies to generators increased by 4.04 per cent to Rs 121,765 crore at the end of April, according to the
PRAAPTI (Payment Ratification And Analysis in Power) portal. The worst offenders were distribution companies in Tamil Nadu, Rajasthan, Uttar Pradesh, Jammu and Kashmir, Telangana, Andhra Pradesh, Karnataka, Madhya Pradesh, Maharashtra, and Jharkhand.
The country is currently in a crisis for a variety of reasons. The impact of the Russia-Ukrainian War, the poor financial standing of power supply companies, the failure of management strategies used in thermal power plant storage facilities, and the sharp rise in electricity demand are all results of rising coal prices on a global scale. The fact that the power plants and other projects are insufficient should be taken seriously. Additionally, very few new projects are being taken on. In the past, only projects whose construction had been postponed were being implemented. Only 1.4 gigawatts were added compared to conventional plans for the fiscal year 2021–2022.
A serious crisis is being caused by the fuel supply for thermal power plants. The high cost of coal in nations where we relied heavily on imports was another factor. The Covid and Lockdown crisis has affected the market, which has seen increased demand from nations like China, the world’s largest consumer of coal. Since the start of 2021, the price of coal has risen on the international market, following the simple economic trend of rising prices and rising demand. Additionally, the Russian occupation of Ukraine has harmed the global economy, which is now a source of inflation.
The commercial generation of electricity using imported coal under the current contract is severely hampered by this. The amount of coal produced by Coal India Ltd. in April 2022 increased by 27.4% to 53.47 million tonnes. To meet the country’s energy needs, however, was insufficient. The failure to properly plan and carry out investment plans in Coal India Limited also contributed to the power crisis. Recycling initiatives are also insufficient in the current environment to meet the rising energy and peak demand. The majority of recycling projects launched in the most recent fiscal year are in the solar sector, which cannot satisfy the daily demand. Power prices now peak on power exchanges during busy times as a result of this.
We return to the stock of thermal power plants to gauge the severity of the crisis. Before the Covid era, the plants had already reduced their stock. This was at a time when the Central Government was advocating against the promotion of fossil fuels. This is the period when changes to inventory management occur. The government has also made available stocks that must be kept in storage for at least 28 days in order to function as well as coal stockpiles that can only be used for a few days. The Central Government intends to shut down thermal power plants that are at least 25 years old and emit pollution. It should be noted that attempts to implement this alternative system consistently fail.
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