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India Coal Plants Face Critical Fuel Shortages Amid Surge in Power Demand

M
Moneycontrol•21-10-2026, 07:49
India Coal Plants Face Critical Fuel Shortages Amid Surge in Power Demand
- •Nearly half of India's 191 coal-fired power plants are operating with critically low fuel stocks as of October 19.
- •Hotter-than-usual weather linked to El Nino has pushed electricity demand to record levels.
- •A weaker monsoon reduced hydroelectric output by 20 percent in September, forcing greater reliance on thermal power.
- •Coal-fired generation rose 13.3 percent year-on-year in September, yet the power supply gap widened to its highest since August 2023.
Key Questions Answered
Data from the Central Electricity Authority showed that 96 out of India's 191 coal-fired power plants had critically low coal stocks as of October 19, which is nearly half of the country's total plants.
Hotter-than-usual weather linked to El Niño has pushed electricity demand to record levels. Additionally, a weaker monsoon has cut down hydroelectric output, forcing a greater reliance on thermal power generation.
Although India sources nearly 55% of its power generation from non-fossil sources, limited battery storage capacity prevents the country from banking surplus clean energy. This leaves the nation dependent on coal to meet demand during peak periods.





