• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

Coal-fired power declines as India leverages inventories

by August 6, 2025
by August 6, 2025

Despite an increase in electricity demand, Indian power plants have reduced their fresh coal purchases from state-run Coal India and are instead utilising their record-high inventories. 

This marks the fourth consecutive month that coal consumption for power generation has decreased, according to a Reuters report.

Coal-fired power plants in India often rely on existing inventories of coal when the increase in electricity demand surpasses the production capabilities of Coal India. 

This dynamic is crucial, as Coal India is a dominant player, responsible for approximately three-quarters of the nation’s total coal output. 

India holds a significant position on the global stage as both the second-largest producer and consumer of coal, trailing only China in both categories. 

This substantial reliance on coal, coupled with Coal India’s market share, highlights the interconnectedness of energy supply and demand within the country’s power sector. 

Reduction in coal-fired electricity

The ability of power plants to draw from stockpiles serves as a critical buffer during periods of high electricity consumption, helping to ensure grid stability and meet the growing energy needs of the nation.

However, analysts and government data indicated that increased hydro and renewable power generation has led to a reduction in coal-fired electricity output.

According to a Monday note from Citi analysts, coal inventories at power plants saw a significant 13% decline in July, dropping from a record 58.1 million metric tons at the end of June. 

This decrease was notably sharper than the average 2% drop observed during July over the past decade.

“Adequate inventories and no risk of a coal shortage have helped power plants reduce buying from Coal India,” Partha Sarathi Bhattacharya, former chairman of Coal India was quoted as saying in the Reuters report.

He added that utilities now had more flexibility in managing their costs.

But this is transient, and coal buying will increase once power demand starts growing faster.

Output decline

In July, Coal India experienced its sharpest production decline since 2019, with output falling 15.6% year-over-year. Concurrently, supply decreased by 9.9%, marking the fastest rate of decline in five years, according to company data.

Coal India’s market share has declined due to increased production from private miners. This shift began in 2020 when New Delhi opened coal mining to the private sector.

While electricity consumption growth has slowed this year due to a general economic downturn and significant rainfall lowering cooling requirements, electricity generation saw a slight increase in July.

Coal-fired power generation in India, which typically accounts for approximately 75% of the country’s electricity production, decreased for the fourth consecutive month in July, according to an analysis of data from the federal grid regulator, Grid-India.

Total power generation rose by 1.8% to 164.66 billion kWh in July, driven by a 22.4% annual increase in hydropower and a 14.4% rise in renewable sources like wind and solar. This growth occurred despite a 4.2% decline in coal power, according to the data.

In July, coal’s contribution to power generation dropped to a five-year low of 64.3%, down from 68.3% the previous year. 

Analysts anticipate this downward trend in coal-fired power’s share to continue. This expectation is based on India’s addition of a record 22 GW of new solar and wind capacity in the first half of 2025 and its ambitious goal to reach 500 GW of non-fossil fuel power capacity by 2030.

The post Coal-fired power declines as India leverages inventories appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Europe markets open: Equities gain; focus on earnings, UK budget deficit concerns
next post
India’s IPO frenzy: why companies are rushing to raise $2.1B before Aug 12

Related Posts

Okta stock price forecast after earnings: will the...

August 27, 2025

Morning brief: Yuan soars to strongest since Nov;...

August 27, 2025

Why are cocoa prices falling sharply as market...

August 27, 2025

Trump memecoin turns bullish as Canary Capital files...

August 27, 2025

An inflation ambush: Australia’s 2.8% price spike shatters...

August 27, 2025

China’s exports to Africa surge 25% in 2025...

August 27, 2025

Europe markets open: Stocks rebound, CAC 40 up...

August 27, 2025

Lego first-half sales hit record $5.4B on strong...

August 27, 2025

Zinc prices rally on US rate cut hopes,...

August 27, 2025

Google Cloud enters $30 trillion payments race with...

August 27, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • Why Enemies of Liberty Hate Economics

    August 27, 2025
  • Can Latin America’s Superwoman Save Venezuela?

    August 27, 2025
  • Blues Introduces New Fleet Management Capabilities to Simplify Large-Scale IoT Deployments

    August 27, 2025
  • The New On-Prem Pivot: Rethinking IoT Device Management in a Security-First Era

    August 27, 2025
  • Connexin LoRaWAN network connects a quarter of a million smart water meters across the UK

    August 27, 2025
  • Why Enemies of Liberty Hate Economics

    August 27, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 5

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025
  • 6

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 7

    Elon Musk says federal employees must fill out productivity reports or resign

    February 23, 2025

Categories

  • Economy (2,344)
  • Editor's Pick (226)
  • Investing (185)
  • Stock (1,583)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

PepeX gains ground on Turbo and Neiro...

May 3, 2025

Reece James’ net worth in 2025: how...

March 25, 2025

What awaits Musk at Tesla, SpaceX, and...

May 30, 2025