India's September power shortfall hits decade-high as monsoon falters and heat spikes demand
Weak monsoon rains and soaring temperatures pushed India's September electricity deficit to its worst level in nearly ten years, with peak shortfalls topping 2 GW on most days.
India experienced its largest September power deficit in almost a decade as a weak monsoon and extreme heat strained the grid. Data from the Grid Controller revealed peak shortfalls above 2 GW on more than half the month, with occasional spikes over 6 GW. Hydropower generation fell nearly 16 % from a year earlier, marking the fifth straight monthly decline, while coal stocks dropped to the lowest level in nearly three years due to flooded mines and transport bottlenecks.
About 40 % of surveyed power plants held less than a quarter of the required coal reserves, leaving most with only a week’s supply. Tata Power chief executive Praveer Sinha described the situation as "on the edge," and Coal India Ltd. saw spot-sale premiums rise sharply, benefiting from the shortage. Despite added solar capacity, nighttime demand still relies heavily on hydro and fossil fuels, exacerbating the shortfall, which peaked at 7.7 GW.
Why it matters
The deficit highlights India's vulnerability to climate variability and could pressure electricity prices and industrial output.
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