Mint Explainer: Why the govt wants gencos to continue blending imported coal?

livemint.com:

Mint explores the reasons behind this governmental directive. The extension to blend imported coal has been announced amid anticipation of high power demand in the upcoming summer season. The power ministry, in its letter, said that the peak demand in the April-June period this year is likely to reach 250 GW, but logistical issues would impact coal supplies.

It noted that supplies of domestic coal will remain constrained due to various logistical issues associated with railway network, although there has been an increase in the number of railway rakes. The government has been proactive in terms of coal supplies after panic situations in 2021 and 2022 amid an unanticipated rise in power demand backed by post-covid economic recovery. The India Meteorological Department last week predicted that maximum temperatures would be above normal in most parts of the country until May, raising concerns about an increase in power demand for cooling purposes.

The peak power demand is likely to grow 7% in FY25 to a fresh record high of 260 GW. The power ministry, in its letter, has said the demand may rise well above that level with rising temperatures. Last year, it had reached a record high of 243 GW.

Ghanshyam Prasad, chairman, Central Electricity Authority (CEA) on Monday told reporters: "We expect the peak power demand this year at 260 GW." The power ministry has also directed the gencos to take up the timely import of coal for blending purposes and to continuously review their stock position. Power plants dependent on imported coal have been asked to operate at full capacity till June. Further, the government plans to commission a total of 12 GW of thermal power plants by the end of March.