India's thermal power sector well-stocked with 14-day coal reserve as govt strengthens peak demand preparedness

THEBUSINESSBYTES BUREAU

NEW DELHI, JULY 20, 2026

India's coal-based thermal power sector remains adequately fuelled to meet rising electricity demand, with thermal power plants holding 42.8 million tonnes (MT) of coal stock as of July 12, sufficient to sustain operations for 14 days at an 85% Plant Load Factor (PLF), the government informed Parliament on Monday.

Coal and lignite-based power stations, with an installed generation capacity of about 230.8 GW, accounted for 69.54% of the country's total electricity supplied during April-June 2026, underlining their dominant role in India's energy mix. During non-solar peak demand hours, these plants achieved a maximum generation of around 188.8 GW, contributing nearly 75% of the country's total power generation of 251.4 GW, informed Minister of State for Power, Shripad Naik, in a written reply in the Rajya Sabha today.

The Minister vsaid thermal power plants are currently receiving adequate coal supplies to meet daily operational requirements. Scheduled maintenance of thermal units is planned well in advance after assessing seasonal demand patterns, with maintenance activities minimized during peak consumption months. The Central Electricity Authority (CEA) also monitors maintenance schedules and permits deferment on a case-by-case basis, depending on the technical condition of plants and the prevailing demand scenario.

To facilitate greater integration of renewable energy into the national grid, the government highlighted that the "Central Electricity Authority (Flexible Operation of Coal based Thermal Power Generating Units) Regulations, 2023", notified on January 30, 2023, require all coal-based thermal generating units to achieve a minimum technical operating level of 40% in accordance with the phased implementation plan prescribed by the CEA.

The government further outlined a series of measures undertaken to ensure uninterrupted thermal power generation during periods of peak electricity demand. During FY 2025-26, 9,470 MW of new thermal generation capacity was added, while an additional 2,260 MW has already been commissioned in the current financial year. Coal supplies to thermal power plants are being monitored daily by a joint committee comprising the Ministry of Power, the Ministry of Railways and the Ministry of Coal, while priority has been accorded to coal rakes and dispatches to power stations.

An Inter-Ministerial Committee (IMC), comprising the Chairman of the Railway Board, the Secretary of the Ministry of Coal and the Secretary of the Ministry of Power, is also meeting regularly to closely review coal availability and logistics for thermal power plants.

To support electricity supply during non-solar hours, India has commissioned about 2,669 MW of Battery Energy Storage Systems (BESS) and 7,426 MW of Pumped Storage Projects (PSPs). These energy storage systems store surplus electricity generated during solar hours and release it primarily during periods of high evening demand, complementing thermal power generation and enhancing grid reliability.