Half of India's coal power plants near empty as electricity demand surges
According to the Central Electricity Authority, 96 of India's 191 coal plants have fuel for under three days. Demand is rising amid heat linked to El Niño.
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what happened
Government data shows that nearly half of India's 191 coal-fired power plants are running on critically low fuel stocks, meaning less than three days of generation. The Central Electricity Authority (CEA) reported 96 such plants as of October 19, up from 60 in mid-September.
The squeeze comes as hotter-than-usual weather, linked to El Niño, pushes power demand up. Daily peak demand this year is running 45 to 50 GW above a year earlier, partly because weaker monsoon rains cut hydropower output. Coal-fired generation rose 13.3% year on year in September, while hydropower fell 20%. Total coal stocks at power stations have dropped about 5% since the start of October, even though the coal ministry said it had stepped up supplies.
why it matters
For coal markets this signals strong domestic demand in India with few alternatives. Despite nearly 55% of generation coming from non-fossil sources, a lack of batteries to store renewable power keeps the country reliant on coal during peak hours.
market impact
Coal: stronger Indian domestic demand and import needs support thermal coal prices
tags
instruments
sources
- Half of India's coal plants run critically low on fuel as power demand surges — Reuters, 21 October 2026 at 01:20 UTC
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