It is desirable that sufficient quantity of coal should be stored. Storage of coal gives protection against the interruption of coal supplies when there is delay in transportation of coal or due to strike in coal mines. Also when the prices are low, the coal can be purchased and stored for future use.

The amount of coal to be stored depends on the availability of space for storage, transportation facilities, the amount of coal that will whether away and nearness to coal mines of the power station. Usually coal required for one month operation of power plant is stored in case of power stations are situated at longer distance from the collieries whereas coal need for about 15 days is stored in case of power station situated near to collieries.

Storage of coal for longer periods is not advantageous because it blocks the capital and results in deterioration of the quality of coal.