India Orders Captive Coal Plants to Maximise Power Output as Demand Rises

Post by : Saif

India has ordered 112 captive coal-fired power plants to operate at maximum capacity from October 1 until the end of December as electricity demand is expected to rise in the coming months.

The order, issued by the Union Power Ministry under emergency provisions of the Electricity Act, applies to captive plants with an installed capacity of at least 50 megawatts. These plants mainly supply electricity to industries such as aluminium, steel, cement and oil refining.

112 Coal Plants Ordered to Run at Full Capacity

The government has directed the affected power plants to maximise electricity generation during the three-month period.

Companies covered by the order include major industrial groups and energy producers such as Vedanta, Tata Steel, Hindalco Industries, JSW Steel, UltraTech Cement, Reliance Industries, Indian Oil, Bharat Aluminium, Hindustan Zinc and Nayara Energy.

The ministry has also instructed the plants to sell any surplus electricity through power exchanges. This could help add more electricity to the wider power market when demand is high.

Rising Electricity Demand Puts Pressure on Supply

India is preparing for higher power demand as temperatures remain above normal in some areas. The source report links the increase partly to the El Niño climate phenomenon, which is contributing to higher temperatures and greater electricity use.

At the same time, nearly 40% of India’s coal-fired power plants are operating with critically low fuel stocks, according to recently reported data.

Low coal inventories could make it harder for some generators to maintain high output if demand continues to increase.

Captive Plants Mainly Serve Industries

Captive power plants are used by industrial companies to generate electricity for their own operations. Many of the plants covered by the government order are connected to large manufacturing and processing facilities.

These include aluminium smelters, steel plants, cement factories and oil refineries, where a reliable electricity supply is important for continuous industrial production.

Under the new directive, generators must provide weekly information to the Central Electricity Authority. The reports will include electricity generation, captive consumption, power sold through exchanges, available capacity and coal stocks.

Tata Power Plant in Gujarat Also Gets Extension

Separately, the government has extended an earlier emergency directive requiring Tata Power’s imported coal-fired plant in Mundra, Gujarat, to operate at full capacity until December 31.

The government has cited the electricity demand situation while extending the requirement.

Read more: US Department of Energy to invest $1.9 billion to upgrade national power grid

Emergency Powers Under Electricity Act

The government’s order uses Section 11 of the Electricity Act, which allows authorities to direct power generators to operate their plants according to government instructions under extraordinary circumstances.

The latest measures show the government is preparing additional generation capacity to meet expected electricity demand during the coming months.

With coal-fired plants being asked to increase output, the availability of coal supplies and the operating capacity of thermal power stations will remain important factors for India’s power system through the end of the year.

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