India's Power Demand Stays Above 250 GW as Coal Stocks Dwindle

what happened

Peak power demand in India stayed at record levels for September, topping 250 GW on most days and approaching summer readings, TradingView reported, citing the Economic Times. Demand reached 250 GW on a Thursday, pushed up by cooling and irrigation loads while monsoon rainfall ran below normal. Power consumption rose roughly 11% over the month.

In October, peak demand hit a record 260 GW on October 5, but nearly all later days have dipped below 240 GW. A government official expects loads to ease next week. Day-ahead electricity on the Indian Energy Exchange has traded above 7 per unit so far this month.

Coal stocks at plants burning domestic coal fell to 17.9 million tonnes on October 15, down from 18.2 million on October 10 and 18.5 million on October 1, as heavy rain in coal regions curbed output and supply. Plants using imported coal hold 2.4 million tonnes. Of the country's 190 coal-based plants, 82 have fuel below a quarter of the required target.

why it matters

Rising load alongside shrinking coal piles raises the risk of supply strain at Indian thermal plants, and officials have signaled that more conventional baseload will be needed. For markets, this supports demand for thermal coal and spot power prices in the near term, although officials expect consumption to fall.

market impact

Thermal coal and Indian spot power: tight fuel supply and strong demand support coal and power prices.

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