Gas Based Plants Becoming Impractical, NTPC Chief Says
OIL & GAS

Gas Based Plants Becoming Impractical, NTPC Chief Says

NTPC chairman Gurdeep Singh has said that gas based power plants are increasingly becoming impractical as a generation option in the present market and policy environment. He warned that persistent supply constraints and elevated gas prices have eroded the commercial viability of such plants, prompting the central public sector firm to reassess investment plans. The observation reflects broader industry concern over the economics of firming capacity using gas.

Singh attributed the shift to a combination of tight domestic gas availability, the cost of imported liquefied natural gas and the low utilisation of existing gas units, which together raise generation costs. He said that prolonged periods of low plant load factors make it difficult to recover fixed costs and justify long term operation of gas based stations. The chairman noted that tariff outcomes and investor confidence are affected when fuel supply and price signals remain uncertain.

The assessment is likely to influence future capacity allocation and project pipelines, with the company placing greater emphasis on renewables and flexible thermal options. Singh indicated that conversion of some assets to multi fuel operation and exploration of firming solutions could be considered to preserve system reliability. He also highlighted the need for clear policy on fuel allocation, contracting arrangements and market mechanisms to ensure energy security while managing costs.

NTPC is exploring alternative pathways such as green hydrogen and enhanced grid flexibility to reduce dependence on gas for peaking and mid merit generation. The chairman urged coordinated action between regulators, fuel suppliers and generators to craft pragmatic solutions that balance affordability, reliability and decarbonisation goals. Industry observers said that policy clarity will be crucial to guide investment decisions.

NTPC chairman Gurdeep Singh has said that gas based power plants are increasingly becoming impractical as a generation option in the present market and policy environment. He warned that persistent supply constraints and elevated gas prices have eroded the commercial viability of such plants, prompting the central public sector firm to reassess investment plans. The observation reflects broader industry concern over the economics of firming capacity using gas. Singh attributed the shift to a combination of tight domestic gas availability, the cost of imported liquefied natural gas and the low utilisation of existing gas units, which together raise generation costs. He said that prolonged periods of low plant load factors make it difficult to recover fixed costs and justify long term operation of gas based stations. The chairman noted that tariff outcomes and investor confidence are affected when fuel supply and price signals remain uncertain. The assessment is likely to influence future capacity allocation and project pipelines, with the company placing greater emphasis on renewables and flexible thermal options. Singh indicated that conversion of some assets to multi fuel operation and exploration of firming solutions could be considered to preserve system reliability. He also highlighted the need for clear policy on fuel allocation, contracting arrangements and market mechanisms to ensure energy security while managing costs. NTPC is exploring alternative pathways such as green hydrogen and enhanced grid flexibility to reduce dependence on gas for peaking and mid merit generation. The chairman urged coordinated action between regulators, fuel suppliers and generators to craft pragmatic solutions that balance affordability, reliability and decarbonisation goals. Industry observers said that policy clarity will be crucial to guide investment decisions.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code