India, the new victim of the global energy crisis, suffers a 'coal shortage'

After surging electricity demand and a sharp decline in domestic coal production eroded stockpiles, India’s nationwide thermal power plants now hold only 8.409 million tonnes of coal—the lowest level since November 2017. Only expensive imported coal can avert the risk of blackouts facing various Indian states. Historically, India imports around 300–400 million tonnes of coal annually, primarily from South Africa, Australia, and Indonesia. However, coal has now become a scarce commodity on the international market: export prices for Australian, Indonesian, and South African coal have surged year-on-year by 171%, 255%, and 189%, respectively—leaving many companies unable to afford imports despite their willingness. In August, India’s coal imports totaled 8.59 million tonnes—a 22.5% decline year-on-year. Specifically, imports from Indonesia stood at 4.4 million tonnes, down 2 million tonnes year-on-year; imports from South Africa amounted to 1.48 million tonnes, a 46.8% drop; and imports from Australia reached 0.79 million tonnes, nearly doubling year-on-year. Meanwhile, no new coal tender announcements appear this month on the official websites of India’s state-owned power utilities—the clearest sign that soaring import costs have forced India to drastically cut coal imports. This is not a sustainable solution and may soon force numerous power plants to scale back or even halt operations, thereby disrupting national industrial production. Persistently high shipping costs and international coal prices are the main reasons behind India’s sluggish coal imports. So long as global coal prices remain elevated, India’s coal import volumes will stay depressed—and its energy crisis will persist. Domestic coal supply shortages also play a critical role. Nearly 80% of India’s low-cost domestic coal supply comes from Coal India Limited—a massive but inefficient state-owned enterprise unable to keep pace with surging domestic demand. From April 1 to September 28, the company supplied approximately 243 million tonnes of coal to power utilities—24% more than last year—yet failed to ease the acute shortage of coal for power generation. Although India’s domestic coal output exceeds 600 million tonnes annually, heavy monsoon rains flooded the country’s largest coal-producing region and nearby transport routes, severely disrupting both production and logistics—further worsening the coal supply crunch. 2. Coal shortages affect more than just electricity generation. India ranks third globally—after China and the United States—in both electricity generation and consumption. According to statistics, India’s national grid has a total installed capacity of 388.134 GW. Renewable power plants—including large-scale hydropower—account for 37% of this total capacity. Last year, India generated 7,779.1 TWh of electricity, representing 5.8% of global generation—roughly equivalent to the combined output of Japan and South Korea. Yet compared with other countries, India’s industrial system is unusually dependent on coal-fired power, and its electricity system remains heavily coal-reliant: coal accounts for 82% of total electricity generation (with most of it coming from coal-fired plants), hydropower contributes 9.06%, and solar and wind together make up only 6.44%. Currently, coal-fired power remains the world’s dominant electricity source due to its advantages—including relatively simple construction, short lead times, high efficiency, minimal external interference, and rapid commissioning. In short: where there’s coal, power generation can begin.

‘Coal shortage’: multiple countries hit by energy crises

Amid Europe’s energy crisis, natural gas has recently joined the ranks of the world’s fastest-rising commodities. Market data shows that European supply contract prices for November rose 23% month-on-month to a record €117.5 per megawatt-hour—up from just €18 six months earlier and over 1,000% higher than the record low monthly price seen in 2020. On October 6 local time, UK natural gas prices surged 37%, hitting an all-time high for wholesale gas prices. According to CNN, U.S. natural gas prices have reached their highest level in seven years. Prices are expected to climb further as the winter heating season approaches. In fact, U.S. natural gas prices have soared more than 180% over the past year alone. Bloomberg analysis suggests this widespread energy crisis highlights the challenges facing Europe and North America in transitioning from traditional fossil fuels to renewable energy sources. Global energy systems are deeply interconnected; soaring natural gas prices have dealt severe blows to energy supplies across numerous countries. India’s current energy supply situation is equally grim. Quoting Indian energy officials, several Indian media outlets reported that, as of October 1, among 135 monitored power plants, 72 held less than three days’ worth of coal stocks; 50 held enough coal for only four to ten days; and just 13 had coal reserves sufficient to last more than ten days.

Coal supply to power plants to normalise soon, Indian official says

14 hours ago

Indian officials expect coal supply to power plants to normalize soon, despite 96 plants facing critically low stocks. Record daily deliveries of 2.6 million tons aim to meet surging demand driven by heatwaves and industrial growth.

reuters

Coal supply to power plants to normalise soon, Indian official says

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