Connect with us

Hi, what are you looking for?

Online Business Success

Why is India facing its worst power crisis in over six years?

417800 042537 updates


A general view of electricity pylons in Mumbai, India, October 13, 2021. — Reuters
A general view of electricity pylons in Mumbai, India, October 13, 2021. — Reuters

NEW DELHI: India is facing its worst power crisis in over six years as a heatwave bakes vast swathes of South Asia, causing widespread power outages. 

Here is a summary of the factors behind the crunch.

Why is India facing a power crisis?

A surge in air-conditioning demand due to an unrelenting heatwave this year, and an economic recovery due to removal of all COVID-related curbs on industrial activity, pushed power demand to record highs in April. 

New hybrid work models adopted since COVID-19 struck in 2020 have resulted in millions of Indians working from home, boosting residential daytime power use. The gap between power supplied and consumed has often been wider at night when solar supplies stop and air conditioning demand surges.

Many power plants ran out of fuel as a result of increasing output aggressively, with average coal stocks held by utilities at the lowest for this time of the year in at least 9 years.

Commuters leave a platform after disembarking from a suburban train, amidst the spread of the coronavirus disease (COVID-19), at a railway station on the outskirts of Kolkata, India, January 5, 2022. — Reuters
Commuters leave a platform after disembarking from a suburban train, amidst the spread of the coronavirus disease (COVID-19), at a railway station on the outskirts of Kolkata, India, January 5, 2022. — Reuters

Despite record production by state-run Coal India, which accounts for 80% of domestic coal output, many utilities were not able to replenish stocks due to the Indian Railways’ inability to supply enough trains to Coal India. 

What is India doing?

The crisis has pushed India to reverse a policy to slash thermal coal imports to zero and asked utilities to continue importing for three years. 

It also invoked an emergency law to start generation at all plants running on imported coal, many of which are currently shut due to high international coal prices. 

Labourers work next to electricity pylons in Mumbai, India, October 13, 2021. — Reuters
Labourers work next to electricity pylons in Mumbai, India, October 13, 2021. — Reuters

The low inventories have forced Coal India to divert supplies to utilities at the expense of the non-power sector. State-run Indian Railways has cancelled passenger trains to free up tracks for the movement of coal. 

India is also planning to reopen more than 100 coal mines previously considered financially unsustainable. 

Advertisement. Scroll to continue reading.

Who is impacted by the crisis?

According to citizen-survey platform LocalCircles, nearly half of its 35,000 respondents from across the country said they faced power outages this month.

Factories in at least three states have been forced to shut down for hours as authorities struggled to handle the demand. 

As the supply of coal to power plants operated by energy-intensive industries was restricted, factories started drawing power from the grid, hiking industrial costs and putting further pressure on overworked coal-fired power plants. 

Chimneys of a coal-fired power plant are pictured in New Delhi, India, July 20, 2017. — Reuters
Chimneys of a coal-fired power plant are pictured in New Delhi, India, July 20, 2017. — Reuters

Power use by eastern Odisha state, home to the country’s biggest aluminium smelters and steel mills, rose over 30% in October-March, nearly ten times the average national growth.

What’s next?

Officials and analysts expect India to face more power cuts this year due to low coal inventories and electricity demand is expected to rise at the fastest pace in at least 38 years. 

Power generation from coal-fired plants, which account for nearly 75% of India’s annual electricity output, is expected to grow 17.6% this year, the highest rate in over a decade.

Coal India’s production and dispatches by train are likely to be hit during the annual June-September monsoon season.



Source link

Advertisement. Scroll to continue reading.
Click to comment

Leave a Reply

Latest

Top Stories

Various prominent Bitcoin experts, including Adam Back, Jimmy Song and Andreas Antonopoulos, have raised some concerns over the implementation of restrictive covenants, in particular...

Top Stories

FTX founder Sam Bankman-Fried and Alameda Ventures made recent headlines for bailing out a handful of CeFi crypto platforms this week, but what exactly...

Top Stories

Although Bitcoin is struggling to form a bottom, altcoins are on a roll and the current price action could benefit UNI, XLM, THETA and...

Top Stories

Ethereum’s native token Ether (ETH) has declined by more than 35% against Bitcoin (BTC) since December 2021 with a potential to decline further in...

Top Stories

The company enables artists and collectors to create, purchase and resell NFTs via blockchain-enabled transactions. Source link

Technology

Interested in learning what’s next for the gaming industry? Join gaming executives to discuss emerging parts of the industry this October at GamesBeat Summit...

Advertisement

You May Also Like

Uncategorized

Introductions get a lot of attention. I’ve explored the topic of how to write them even though as a reader, I always skip them....

Online Business Success

The internet is now our nervous system. We are constantly streaming and buying and watching and liking, our brains locked into the global information...

SEO Guide

There are all kinds of pictures of the world on the internet, but to find one of these specific pictures that you want to...

Online Business Success

You can think of link building in many ways. I like to call it tedious, painful, and a test of patience. It’s also necessary...

Advertisement