India collided with energy crisis

In India, the occurrence of the energy crisis was predicted due to an acute shortage of coal, the Indian Express newspaper writes.

Restoration of the economy after a pandemic and climatic factors caused an increase in electricity demand, which provoked an acute fuel shortage at the country’s coal power stations, India’s central control (CEA) reported. India Minister Raj Kumar Singh said that at 63 of the 135 coal power plants, coal reserves could end over the next two days, while at 17 stations are already fixed zero fuel reserves. A total of 75 stations are threatened because of the interruptions in the supply of coal or drill demand. At the same time, the coal power plants account for almost 70 percent of electricity production in the country.

The Ministry of Energy of India has previously noted that the growing demand for energy is a good sign for the economy, as this means the return of a larger number of households and industrial enterprises to the pre-crisis level. However, the resulting season of heavy rains in the country has adversely affected the mining and the process of transportation. The minister noted that the current lack exceeded the norms, but this has not yet led to the disconnection of electricity in the cities. According to him, the demand for fuel will grow, while threatened about 28.2 million consumers of essential goods in India (fans and air conditioners), most of which relate to the lowest average class and poor.

Indian energy sector companies can also face the prospect of importing coal at overpriced prices, which, according to analysts of the Indian branch of the Nomura’s financial company, will cause significant damage to the restoration of the country’s economy. According to Singha, the government expects demand to begin to shrink from the second half of October 2021, but the consequences of the deficit can last for another six months.

The coal crisis in India occurred against the background of the global energy crisis. Due to the lack of electricity in China, electricity has already turned off in cities and forced the factory to reduce production, and a sharp rise in price of electricity in Europe has resolved the restoration of the economy of the entire eurozone.

/Media reports.