• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 8 days Does Toyota Know Something That We Don’t?
  • 2 days America should go after China but it should be done in a wise way.
  • 8 days World could get rid of Putin and Russia but nobody is bold enough
  • 10 days China is using Chinese Names of Cities on their Border with Russia.
  • 11 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 11 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 11 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 10 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 8 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 11 days Putin and Xi Bet on the Global South
  • 11 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"

India's Coal Crisis Is Far From Over

India is facing a “severe and protracted” power crisis due to the price inflation of coal, which the country uses to generate as much as 75 percent of its power, Indian media report, citing S&P Global Commodity Insights.

India found itself in the middle of a power shortage as several factors combined, including rising coal prices, which discouraged imports, leaving stockpiles at critically low levels, and a heat wave that pushed demand earlier this year much higher.

The country is working on boosting its domestic production, and this went up by 28.6 percent in financial 2021/22, which ended on May 31. This was a record high, at 777 million tons. However, boosting domestic coal production to a level of self-sufficiency will take a long time, which coal is needed now to power the economy.

Meanwhile, the country was hit by a series of blackouts as a result of insufficient coal supplies, both domestic and imported. The situation became so grave that now the Indian authorities are threatening utilities that refuse to pay higher prices for imported coal to cut their access to local coal, according to S&P Global Commodity Insights.

In the past few weeks, the burden has eased, Reuters’ John Kemp wrote, as hydropower and wind generation increased seasonally, picking up the slack from coal. Yet the shortage problem remains, and it needs solving.

Russia has become an important source of import coal because of the discounts traders offer on Russian coal, while Indonesia’s most widely sold grade soared from a little over $65 per ton to $86 per ton.

Power shortages are likely to return in a couple of months, which makes securing enough coal stocks for September and October quite critical. By September, the monsoon will be over, and hydro and wind output will decline, and have to be replaced with other forms of generation capacity.

By Irina Slav for Oilprice.com


More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News