The country could experience a severe power outage, putting the country on high alert. India’s coal-fired power plants had an average fuel supply of four days, the lowest in years and down from 13 days at the beginning of August. In the event of a power outage, more than half of the facilities have been placed on high alert.
Power tariffs have risen, which is bothersome because coal is used to generate over 70% of electricity, and coal supplies are being diverted away from big clients like aluminum smelters and steel mills.
Coal-fired power plants may need five to six months to acquire enough fuel, according to Union Power Minister R K Singh.
China is likewise struggling with the same two key concerns that India is currently dealing with: growing energy use as industrial activity starts up following the removal of epidemic restrictions and a reduction in local coal production. Despite the fact that heavy rains have devastated mines and critical transit links, the country meets around three-quarters of its demand locally.
Even as Prime Minister Narendra Modi promises a massive rise in renewables and the country’s top billionaires scramble to add green assets, the energy crisis serves as a reminder of coal’s crucial role in India’s economy.
Despite the fact that the weather will play a crucial role in coping with the crisis, India should be able to raise adequate supplies to meet the shortage at power plants by the second week of October. However, Anil Kumar Jain, India’s coal secretary, has stated that rebuilding dangerously depleted reserves will take much longer.
India’s remarkable growth rate would be limited by rising electricity costs.
According to a Bloomberg News poll, the GDP is anticipated to grow at a 9.4% annual rate through March 2022, making it the fastest among major global economies.