Its slowing economy is limiting its coal use.
The growth of coal-fired power in India has ground to a halt for the first 10 months of 2019 and for the 12 months ending October as consumption in the sector took a 12,500GWh-deep nosedive YoY in end-October, the Institute for Energy Economics and Financial Analysis (IEEFA) reported.
The growth of the sector’s coal consumption averaged 6.3% or 27 million tons for the previous 12 years.
“When economies stumble, slackening electricity demand is a very common symptom. In India’s case, the current decline is quite specific to coal,” IEEFA researcher Charles Worringham wrote.
In contrast, power from other sources grew 24,000 GWh or 8.4% in 10M 2019. Overall electricity generation remained growing for YTD 2019.
The dive in coal consumption could not be attributed to a coal shortage, with power plant stocks soaring 66% YoY. The duration of the downturn could not be pinpointed either. Worringham said that the country could likely be limiting its coal use.
However, this downturn could provide an opportunity to fortify the country’s energy transition plans. “This could include a revival of large-scale renewable infrastructure investment in preparation for sustained higher growth,” Worringham said.
