The Central Electricity Authority (CEA), under the mandate of the Electricity Act 2003, recently altered the norms for coal stocking at thermal power generating plants. The revised norms are aimed at preventing a recurrence of the low coal stock situation experienced by numerous plants.
The CEA, which aims to devise a National Electricity Plan every five years, oversees optimal resource utilization in power generation. The revision comes after a coal crisis in October 2021 that affected economic reopening and the scale of production in various businesses.
The Background of the Crisis
India’s thermal power plants encountered a critical coal shortage in October 2021. The available coal stocks had dipped to an average of four days of fuel across many thermal stations. This shortage was fuelled by factors such as a sharp rise in demand, increased prices of imported coal, and decreased coal procurement before the monsoon season.
This massive coal scarcity compelled several states to buy more expensive power on the energy exchange. The situation led to an increase in the average market clearing price of power to Rs 16.4 per unit in October. Thus, it became necessary to revise the Coal Stocking Norms.
Comparing Previous and Revised Norms
The previous norms mandated a coal stock of 15-30 days, depending on the plant’s distance from the coal source. For instance, power plants situated at pit head plants required a 15-day coal stock, while the requirement increased with distance – 20 days within 200 km, 25 days within 1,000 km, and 30 days beyond.
The revised norms, however, require a 17-day coal stock at pit head stations and a 26-day stock at non-pit head stations from February to June each year. Non-pit head plants refer to those where the coal mine is over 1,500 km away. The daily coal requirement will now be calculated using an 85% Plant Load Factor (PLF), a change from the previous norm that used the average consumption pattern at a minimum 55% PLF.
Penalties and Regulations
Under the new norms, power plants with lower utilization rates must stock more coal than before. The CEA will levy penalties against power plants failing to adhere to these norms – a feature not present in previous regulations.
Significance of the Revised Norms
The updated norms seek to prevent a repeat of the recent situation where several of the country’s 135 coal-based power plants encountered critically low coal stock levels, sufficient for just three to four days of supply. The relaxed coal stocking norms should promote improved fuel distribution among generating stations, preventing shortages and ensuring uninterrupted power supplies, irrespective of the demand situation. It also aims to reduce each plant’s fuel requirement and enhance distribution across all stations.
About Coal
Coal, one of the richest fossil fuels, is widely used in domestic settings, industries like iron and steel, steam engines, and electricity generation. Electricity produced from coal is referred to as thermal power. Now known as ‘Buried Sunshine’, coal was formed millions of years ago when giant ferns and swamps got buried under the layers of earth.
The world’s leading coal producers include China, the US, Australia, Indonesia, and India, with leading coal-producing areas in India being Raniganj, Jharia, Dhanbad, and Bokaro in Jharkhand. Furthermore, it is classified into four ranks: anthracite, bituminous, subbituminous, and lignite, depending on its carbon content and the amount of heat energy it can produce.
