India's coal-fired power plants are struggling with critically low fuel inventories as unseasonably high temperatures drive electricity demand, leaving nearly half the fleet with less than three days of supply.
India's coal power sector is facing a severe supply crunch as 96 power plants are currently operating with less than three days of fuel reserves. This rapid depletion, driven by unseasonably warm weather and surging electricity demand, suggests a tightening market that will likely support higher coal prices in the near term.
As of the latest report, 96 coal power plants have less than three days of fuel consumption remaining.
The squeeze is primarily driven by higher-than-usual electricity demand caused by warmer-than-average weather conditions.
India's power sector faces an urgent supply crunch as 96 coal-fired plants report fuel reserves sufficient for only three days of operations. Surging electricity demand driven by unseasonably warm weather has depleted stockpiles, significantly increasing from the 60 plants reported in mid-September.
The shortage is driven by a combination of unseasonably warm weather and a resulting surge in electricity demand, which has outpaced current coal supply logistics.