India's federal Ministry of Power has ordered 112 coal-fired power plants — more than 100 of them primarily dedicated to supplying industrial facilities — to operate at full capacity from early October through the end of the year, in preparation for an expected rise in electricity demand over the coming months.
Selling surplus electricity through power exchanges
The ministry issued the order under the emergency provisions of the Electricity Act. It covers plants with an installed capacity of at least 50 megawatts and also instructs generators to sell surplus electricity through power exchanges.
The order covers plants owned by companies operating in key industrial sectors, including steel, aluminum, cement and oil refining. The plants are primarily used to supply electricity to their affiliated facilities.
Coal inventories under pressure
The move comes amid growing pressure on India's power system, with about 40% of the country's coal-fired plants operating with critically low fuel inventories after electricity demand rose alongside higher-than-usual temperatures caused by the El Niño phenomenon.
The ministry has required the plants to submit weekly data to the Central Electricity Authority, including production levels, internal consumption, electricity sales, available capacity and coal inventories.
Extension of Tata Power's operating order
The government has extended an earlier order requiring Tata Power's imported-coal-fired plant in Mundra, Gujarat, to operate at full capacity through December 31, in light of expected pressure on electricity demand.
