CIL strike impact: Power outages likely in North and East as stations face coal ... - Business Standard

The five-day strike announced by the Coal India union is likely to have a cascading effect on the country’s power sector. Northern and eastern parts of India could face power outages, as generating stations supplying power to these areas would face a shortage of coal.

Fuel availability at 42 coal-based plants, with a combined capacity of 46,610 Mw, is at a critical level, implying these have less than seven days of coal left. Of these plants, 20 are at a super-critical level, or have less than four days of coal supply. The strike could worsen their operation capacity. Most of the NTPC power plants run on blended fuel, with eight to 10 per cent of imported coal.

According to executives, the ratio of imported coal in optimum fuel blend increases during crises like the current one; and the demand or imported coal goes up.

This escalates the cost of power as well. “Spot power prices could go up by 20-25 per cent, Utilities in North and East India will have the greatest impact,” said a power market executive. The average market-clearing price of power is Rs 2.59 a unit as on Tuesday.

Power stations with captive mines might look at this as an opportunity to sell merchant power, at higher rates.

Given that state utilities in North and East India are strapped for cash and not in a position to buy expensive power, there could be power outages in these parts. The peak power deficit currently stands at 2,370 Mw in the northern region and at 2,147 Mw in the southern.

Central Electricity Authority (CEA) executives said a contingency plan would have to be made if the Coal India strike went on beyond two days, affecting power supply across the country. The apex electricity authority could direct power generated from gas-fired generation plants and merchant power from those based on captive mines to areas facing power crunch.