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Home National & International

October power supply deficit in India worst since March 2016: POSOCO Report

Lagatar News by Lagatar News
October 13, 2021
in National & International
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Lagatar24 Desk

New Delhi, Oct.13: During the first 12 days of October, India’s power supply fell around 750 million units short of demand, owing mostly to a coal shortage, resulting in a 1.6 percent deficit, the largest since March 2016, according to data from grid regulator POSOCO. Even with 19 days left in October, the October shortfall was already the largest in absolute terms for a single month since November 2018.

Northern states like Rajasthan, Punjab, Haryana, and Uttar Pradesh, as well as eastern states like Jharkhand and Bihar, were the hardest hit, with supply shortages ranging from 2.3% to 14.7%. Increased economic activity during the second wave of the coronavirus epidemic has increased demand for coal, causing a supply deficit that has forced northern states like Bihar, Rajasthan, and Jharkhand to cut power for up to 14 hours per day.

The government has encouraged power companies to import up to 10% of their coal needs to blend with domestic coal, and has warned states that if they are caught selling on power exchanges to profit from rising prices, they will face electricity supply restrictions. The data indicated that India’s reliance on coal-fired electricity grew to 69.6% in October, up from 66.5 percent in September, aggravating the coal scarcity amid a drop in output from other sources like wind and hydro.

Over 60% of the country’s 135 coal-fired power facilities have fuel stocks that are less than three days old.

According to the data, the share of renewable energy output in October fell to 8.34% from 11.33% in September, while hydro energy output declined by 1.3% points.

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