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India's Coal-Powered Electricity Production Surges to Compensate for Hydro Shortfall

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India's Coal-Powered Electricity Production Surges to Compensate for Hydro Shortfall

Posted on : 01-12-2023 | Author : Reuters

Photo by ETEnergyWorld

India experienced a surge in coal-based electricity generation during October, setting a record high, as a compensatory measure for the decline in hydroelectricity production due to below-average monsoon rains. Despite advancements in wind and solar energy deployment, coal remains pivotal to the country's energy security, highlighting the challenges associated with emission reduction.

The country's dependency on coal mines and the rail network remains crucial to meet the escalating electricity demands and ensure reliability, despite the ambitions expressed at the UN climate conference in Dubai. The shortfall in hydro generation resulted from deficient monsoon rains, significantly depleting water resources, leading to a 30% decline in hydroelectric generation.

Data reveals a considerable increase in total electricity demand met, surging by 21% in October compared to the previous year. However, the shortfall in hydroelectricity was notable, decreasing by 30% due to unusually low monsoon rainfall. The volume of water stored in monitored reservoirs by India's Central Water Commission was significantly below 2022 levels and the long-term average, reflecting a depletion in water resources.

Despite significant increases in installed solar and wind capacities, they couldn't compensate for the hydro deficit. Wind energy increased by 10%, and solar energy saw a rise of 16%. Consequently, the electricity system leaned heavily on gas (103% increase) and particularly coal (33% increase) to meet the surging demand.

Coal-fired generators achieved a seasonal record by producing 111 billion kWh in October 2023, compared to 84 billion kWh in October 2022. Coal's contribution to electricity demand surged to 80%, marking an increase from 73% in the preceding year, while the hydro share plummeted to 9% from over 15%.

The findings emphasize the dominant reliance on coal for ensuring baseload power and system reliability, despite considerable growth in renewable energy capacities. India strategically increased coal production and transportation volumes by railways to generators to manage the rising electricity demand and counter poor hydrological conditions. Coal output increased by 13 million tonnes in October and by a total of 87 million tonnes since January, compared to the previous year.