India may increase coal use for power generation this summer as LNG supplies are disrupted by the Middle East crisis.
In India, electricity demand typically increases rapidly during the intense heat between April and June. However, ongoing geopolitical tensions have disrupted LNG supplies from the Middle East, affecting India’s gas-based power generation. Export shipments, especially from major suppliers such as Qatar and the United Arab Emirates, have been affected.
In this situation, the Indian government and power generation companies are planning to rely more on coal-based power generation instead of gas-based power plants. A government tender sought proposals for around 12,000 megawatt-hours of gas-based power, but no company has participated so far. As a result, preparations are being made to run coal-fired power plants at full capacity.
Although India has about 20 gigawatts of gas-based power generation capacity, it is typically utilized at only 6–10% because LNG imports are expensive. In the current crisis, a large portion of the gas supply is being diverted to critical sectors such as households and the fertilizer industry, which could further reduce gas use in power generation.
However, experts believe that the likelihood of a major power crisis is low because India’s electricity system relies on multiple sources, including coal, hydropower, nuclear, and renewable energy. Currently, about 75% of the country’s total electricity is generated from coal, making it relatively easy to increase coal use as an alternative.
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— Explained by Pralay Bhunia, Electrical Engineer. Source: Reuters
