Indian states seek additional power allocations to prevent outages
by@Reuters
Summary
Several Indian states, including Rajasthan and Gujarat, are requesting additional power allocations from the federal government to prevent outages as nighttime electricity supply tightens. This situation arises due to weaker hydropower generation linked to reduced rainfall and ongoing maintenance at coal power plants, which has significantly limited available electricity. Currently, nearly 41 gigawatts of power plants are offline, and about 47% of coal plants have critical fuel levels. The sudden spike in electricity demand, extending longer into the post-summer season than expected, has left states unprepared, complicating efforts to redistribute power effectively.
Analysis
Gujarat: Gujarat ranks among India's top renewable-energy producing states thanks to large solar and wind installations. Along with other states, it has sought extra federal power allocations to maintain supply during evening and nighttime hours when renewables are unavailable. Rajasthan: Rajasthan is one of India's leading renewable-energy states with significant solar and wind capacity. It has requested additional power from the central government to avoid outages amid reduced nighttime supply from weaker hydropower and maintenance schedules at some plants. Rupesh Sankhe: Rupesh Sankhe is a research analyst at Elara Securities specializing in the Indian power sector. He attributed the current shortfall to extended summer demand, inadequate planning by states, expensive exchange purchases, and offline generation capacity. Elara Securities: Elara Securities is a research and brokerage firm that provides analysis on India's energy and infrastructure sectors. Its analyst contributed commentary on the factors driving recent power shortages and state requests for additional allocations. Government of India: The Government of India manages national energy policy and controls a pool of coal and hydropower capacity that can be redistributed to states facing shortfalls. In this development, federal officials are fielding requests from multiple states for extra allocations as nighttime supply tightens due to lower hydropower output and plant maintenance. The ministry has already redirected power to affected regions while encouraging faster adoption of battery storage for renewables. Generation Mix: Coal-fired output has increased to compensate for a sharp decline in hydropower generation caused by reduced rainfall. Demand Patterns: Electricity demand has remained elevated longer than expected into the post-summer period, catching states unprepared in their annual power purchase planning. Renewable Integration: The power ministry is urging renewable-energy producers to accelerate battery storage deployment to shift surplus daytime solar generation to evening and night periods.
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