India Keeps 10,000 MW Coal Capacity Running to Cover Gas Shortfall

The Central Government has decided to defer the shutdown of around 10,000 megawatts (MW) of coal-fired thermal power capacity for the next three months, aiming to address ongoing gas shortages and ensure uninterrupted electricity supply across the country. The move comes as part of a broader strategy to maintain stability in power generation during a period of rising demand, particularly ahead of the summer season when electricity consumption typically surges. Officials said the decision reflects a precautionary approach to avoid any potential supply disruptions.

Under normal circumstances, nearly 20,000 MW of thermal power capacity undergoes scheduled maintenance during this time of the year. However, the government has postponed maintenance for roughly half of that capacity to compensate for a shortfall of approximately 8,000 MW from gas-based power plants. Additional Secretary in the Power Ministry Piyush Singh stated during a press briefing that this step would help balance the energy mix and maintain grid reliability despite reduced gas-based generation.

Singh further highlighted that the country currently has coal reserves of about 55 million tonnes, which are expected to last for nearly 19 days under current consumption levels. To further strengthen supply, the government is planning to add an additional 3,500 MW of thermal power capacity in the near term. He also noted that gas-based power currently contributes only about 1.4% to the total electricity generation mix, making coal a critical component of India’s energy security.

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The Power Ministry has already issued directives under Section 11 of the Electricity Act, mandating certain power plants to operate at full capacity in the national interest. As a result of these directives, an additional 4,000 MW of power generation capacity has already been brought online. Authorities are also allowing gas-based power producers, including private players, to import their own fuel to mitigate supply constraints and maintain operational continuity.

Officials emphasized that more than 75% of India’s electricity supply is generated by thermal power plants, underscoring their importance in meeting base load demand. At the same time, the government continues to expand renewable energy capacity, including solar and wind power, over the past decade. Despite this transition, thermal power remains essential for ensuring consistent and reliable electricity supply, especially during peak demand periods.

Looking ahead, the government has projected a peak electricity demand of 271 gigawatts (GW) for the current year and expressed confidence in meeting this requirement. Coal demand is also expected to rise significantly, with estimates indicating an increase to 906 million tonnes for the full fiscal year, up from the previous year. The growing demand reflects higher electricity consumption trends and the need to maintain adequate supply during critical periods, particularly as the country prepares for increased energy usage in the coming months.

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