India’s energy demand growth slows in November, helping to alleviate coal shortage

India’s energy demand growth slows in November, helping to alleviate coal shortage

Smoke billows from the cooling towers of a coal-fired power plant in Ahmedabad, India, October 13, 2021. REUTERS / Amit Dave

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NEW DELHI, Dec 1 (Reuters) – India’s electricity demand grew 2.2% in November, slower than October’s 4.1%, a Reuters analysis of government data showed, helping the nation energy-hungry to overcome a crippling coal shortage that caused a widespread coal shortage. power outages.

Rising energy demand and high global prices in October left utilities scrambling for coal, India’s dominant fuel for power generation, despite record supplies from state-run Coal India (COAL. NS), which has a near monopoly on production.

Average daily coal-fired power generation in November was down 2.8% from October, an analysis of load dispatch data from federal grid regulator Power System Operation Corporation Ltd (POSOCO) showed.

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The number of plants that have supply agreements with Coal India with inventories of three days or less fell to 31, as of November 29, the latest data from the Federal Ministry of Energy shows, compared to 44 of 135 plants in October.

The average coal inventory held by power plants would last nine days, longer than the six days on October 31, but still lower than the 12-day average three months ago.

Dependence on coal for electricity generation increased to 75.2% in November, compared to 70.6% in October, although total electricity production from coal declined.

India’s renewable production generally slows in the first and last quarters of each year due to lower generation from sources such as hydro, solar and wind, increasing dependence on coal.

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The increase in energy demand last month was driven by growth in electricity consumption in India’s most industrialized state, Maharashtra.

Other industrialized states such as Karnataka and Tamil Nadu saw a decline in energy use, while Gujarat’s consumption growth was largely flat.

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Report from Sudarshan Varadhan; Edited by Subhranshu Sahu

Our Standards: The Thomson Reuters Trust Principles.

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