Amid an acute coal shortage, India’s electricity demand surged 4.9% during the first half of October as supply fell short of demand by 1.4%. With economic activity bouncing back at an unprecedented rate after the horrifying second wave of coronavirus pandemic, the country’s electricity demand has touched soaring heights, resulting in a supply deficit due to a coal crisis.
This is despite a 3.2% rise in coal-fired generation and 30% rise in solar output, a Reuters report analysing the government’s data showed. The coal shortage has forced several northern states, including Rajasthan and Punjab, to cut power this month for up to 14 hours a day.
In addition to the power demand, high global coal prices have left utilities scampering for coal – India’s dominant source of generating electricity –