Coal Buffer: India's Power Supply Secured for Summer

State-owned Coal India has announced it has secured India's power supply for the upcoming summer season by building a significant buffer of 168 million tonnes of coal. This reserve is intended to meet the anticipated surge in demand driven by increased use of cooling devices due to heatwaves. The company's statement highlighted that as of late May 2026, coal stocks at domestic coal-based power plants stood at 47.6 million tonnes, with an additional 113.5 million tonnes inventoried at mine heads. This latter figure represents a 10% increase from the previous year. Further bolstering the available supply, approximately three million tonnes are at transit points and four million tonnes are in transit via rail, bringing the total readily available coal to 168 million tonnes. This buffer is considered sufficient to meet 19 days of consumption. The article noted that a natural compression of coal stock levels at power plants during peak summer is common and does not indicate a supply crisis. In addition to the existing stock, about 50 million tonnes of in-situ mine coal are ready for rapid extraction if required. India's peak power demand has recently surged, reaching a record high of 270.82 gigawatts on May 26, 2026, surpassing previous records set in preceding days. This heightened demand is directly linked to the prevailing heatwave conditions across the country. Coal India also mentioned that it has been proactively communicating with power plants to encourage advance stock-building, especially for those located in areas with logistical challenges. Coal India is a dominant producer, accounting for over 80% of the nation's domestic coal output.