Power supply in India reached 560 million kilowatt-hours (kWh) in September 2023, marking the highest level of shortage in the past three years. This increase is due to high industrial electricity demand and the effects of the El Niño phenomenon.
Increase in Electricity Production in India
According to published data, total electricity production in India in September increased by 11.3 percent compared to last year, reaching 174.17 billion kilowatt-hours. Meanwhile, electricity production from coal-fired power plants and renewable energy sources has also increased compared to last year. However, higher demand from households and industries, along with adverse weather conditions caused by El Niño, has impacted India's electricity production mix.
Condition of Coal Power Plants in India
Despite Indian coal power plants operating at higher capacity in recent months to meet rising demand, a shortage of rainfall and reduced output from hydroelectric plants have exacerbated the crisis. In September, electricity production from coal power plants increased by 13.3 percent compared to last year, and the share of this type of production in total electricity generation reached 66.03 percent, up from 64.6 percent in August. Additionally, renewable electricity production has also seen a 25.1 percent increase, but its share of total electricity production has decreased to 17 percent.
In recent weeks, nearly 40 percent of coal power plants in India have faced severe coal inventory shortages. Many of these plants are experiencing coal inventory levels below 25 percent. Meanwhile, total coal demand in India is expected to increase by 4.2 percent this year, reaching 1.353 billion tons, driven by rising electricity demand and disruptions caused by weather conditions and issues in the Strait of Hormuz.
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