Power outages are increasingly affecting homes and smaller manufacturing units across India, as coal supplies at numerous power stations dwindle while the demand for electricity surges due to rising temperatures and significantly reduced hydropower generation.

In recent weeks, the demand has outstripped supply, resulting in power interruptions for households in certain regions, along with smaller factories and smelting operations, as reported by Bloomberg on Monday. 

The unprecedented El Niño phenomenon has resulted in the most feeble monsoon season India has experienced in a decade, pushing temperatures well above the seasonal average. This situation has put immense pressure on the power supply, coinciding with insufficient rainfall that is hampering hydropower production, while coal reserves at numerous coal-fired power plants have dwindled to alarming lows.

Recent government data revealed that the proportion of coal-fired power plants operating with critically low coal inventories has surged to over 40% of all active coal facilities by the end of September.

As of October 1, a staggering 85 plants reported coal stocks falling below 25% of their required levels, underscoring the escalating strain on the coal supply chain, according to the Finland-based Centre for Research on Energy and Clean Air (CREA) in its quarterly assessment of India’s power sector for July to September. 

The intense El Niño phenomenon, coupled with soaring temperatures, has intensified the strain on India’s coal supply, leading power plants to consume coal at an alarming rate due to diminished hydropower generation and escalating electricity demand.

The strain on coal stocks and coal-fired power generation starts to affect the economy. Industry experts have indicated to Bloomberg that the pressure on coal reserves and coal-based power generation is beginning to impact the economy. The mills are grappling with power outages lasting between 10 and 12 hours daily, compelling these facilities to scale back their production According to Manish Dhuppad, the general secretary of the Chhattisgarh Mini Steel Plant Association, in comments made to Bloomberg,

The ongoing power outages are significantly increasing energy expenses for factories and steel mills, forcing them to rely on generators that run on costly fuel.

Residential areas are also feeling the impact. In Uttar Pradesh, the most populous state in India with over 240 million inhabitants, certain villages are experiencing blackouts lasting up to seven hours each day.  

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