Imports of coal for blending decrease by 3.4% as supply increases
For the first three weeks of this month (until April 22, 2024), the amount of coal imported by domestic power plants for blending purposes has decreased due to the country’s plenty of coal. This occurs in spite of a nationwide heat wave that has increased demand for electricity.
The coal ministry’s statistics shows that imports decreased to 1.42 million tonne (MT) through April 2024, a 3.4% decrease from 1.47 MT during the same time the previous year. In order to avoid a coal crisis during the busiest summer months, the electricity ministry ordered generating firms, or gencos, to combine imported coal in thermal power plants.
In addition, until April 22, 2024, the supply to the non-power sector increased by 28% to 12.75 MT. According to official statistics, during the same time last year, deliveries to the non-regulated sector (NRS), which include businesses including sponge iron, cement, steel, and aluminum, were 9.93 MT.
This year, there are few limitations on the country’s abundant supply of coal, with the electricity industry receiving priority over all other uses. According to an official, this explains why coal shipments to non-power sectors have increased dramatically this month. The official also said that the price of coal has dropped 30% from the previous year on the global market.
Power plants that are reliant on imported coal (ICB) are operating at maximum capacity due to the decline in international coal prices. The amount of electricity generated by imported coal-based (ICB) power plants increased by almost double in comparison to the previous year.
