Coal Demand at Power Plants to Jump 11.5 percent this Summer

India is bracing for a sharp rise in coal demand at power plants, with consumption expected to grow 11.5 percent in the April–June quarter, driven by soaring electricity needs during an intense summer.

The spike in coal demand at power plants reflects rising cooling demand as temperatures climb and power usage peaks across the country.

According to official estimates, coal-based power generation is projected to increase by over 13 percent during the quarter. Peak electricity demand could reach 271 GW, significantly higher than last year’s 243 GW, putting added pressure on the grid.

With air conditioners and cooling systems running at full capacity, utilities are leaning heavily on coal to ensure stable supply.

Also Read: Smart Manufacturing: From Connected Units to Cognitive Businesses

Despite the surge, supply conditions remain comfortable. Power plants currently hold around 54 million tonnes of coal, while overall stock levels have touched a record 224 million tonnes. This buffer is expected to help meet the rising coal requirement without immediate shortages.

Limited availability of gas-based power is also pushing utilities toward coal. During peak demand, around 8–10 GW of gas-based capacity may fall short, further increasing reliance on coal-fired plants.

The rising coal demand highlights India’s continued dependence on fossil fuels, even as renewable energy capacity expands. While clean energy is growing steadily, coal remains the backbone of reliable power generation, especially during high-demand seasons like summer.