India asks coal-fired power plants to raise output amid expected demand surge

India invoked an emergency law to request imported coal-based power plants to maximize generation to prepare for the expected surge in power consumption this summer, Reuters reported, citing an internal power ministry notice.


The power ministry expects these power plants to operate at full capacity and sell power to buyers on exchanges. However, many of them have not run at full tilt as they found it hard to compete with power generated from cheap domestic coal.


The directive will be effective from March 16, giving plants the time to import coal ahead of the expected surge in consumption, and it may remain valid till June 15, according to Reuters.


India's power ministry expects a peak demand of 229 GW in April and thermal coal power capacity needs to reach 193 GW during the same month. Power coal consumption during the fiscal year ending March 2024 is expected to rise 8% compared with a year ago driven by more active economic activities and erratic weather, according to the ministry.


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