Govt Asks CEA to Compute Eligible Quantity of Domestic Coal for Power Plants amidst Mandatory 10% Imported Coal Blending

The Ministry of Power has directed CEA to determine the eligible quantity of domestic coal usage for the power plants using coal under Shakti B(viii) (a) after taking into account that 10 per cent of imported coal used for blending is equivalent to about 15 per cent of the domestic coal in terms of energy.

May 31, 2022. By Manu Tayal

The Ministry of Power has directed CEA to determine the eligible quantity of domestic coal usage for the power plants using coal under Shakti B(viii) (a) after taking into account that 10 per cent of imported coal used for blending is equivalent to about 15 per cent of the domestic coal in terms of energy.

The government has mandated a 10 per cent blending of imported coal for Private power generators that bid for coal and sell power in the exchange.

Shakti B (viii) (a) is the window for power plants having untied capacity to bid for coal, to generate power using this coal and sell it in the exchange under Day Ahead Market (DAM) or the DEEP portal for short term power purchase agreement (PPA).

For such plants, the Ministry has directed CEA to compute the quantity of coal consumed (procured under SHAKTI B (viii) (a) window) on the basis of mandatory blending of 10 per cent by weight for generation during the period starting from June 15, 2022, up to March 31, 2023.

Thus, the move will provide a window of about three weeks for these coal-fired power plants to procure imported coal.

Last month, after considering the increased demand for electricity, and coal supplies from domestic coal companies not matching with the consumption of coal, Power Ministry advised all Gencos including IPPs to blend 10 per cent of imported coal for power generation. This was done to supplement the domestic coal supply.
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