India Orders Gas-Fired Power Stations to Meet Summer Demand

16 Apr 2024 CW Team

The ministry has forecasted a peak power demand of 260 GW this summer (April to June 2024). This decision is part of a series of measures taken by the Centre to ensure that electricity demand in the summer is met. According to a power ministry statement, the order shall remain valid for the generation and supply of electricity from May 1, 2024, to June 30, 2024.

To ensure maximum power generation from Gas-Based Generating Stations, the government has issued directions to all Gas-Based Generating Stations under Section 11 of the Electricity Act, 2003, the statement said. The order under Section 11 aims to optimize the availability of power from GBSs during the high-demand period.

As per the arrangement, GRID-INDIA will inform GBSs in advance of the number of days for which gas-based power is required. GBSs holding Power Purchase Agreements (PPAs) with distribution licensees shall first offer their power to PPA holders. If the power offered is not utilized by any PPA holder, then it shall be offered in the power market. GBSs not tied to PPAs must offer their generation in the power market. A high-level committee headed by the Chairperson, of the Central Electricity Authority, has been constituted to facilitate the implementation of this direction.

Other measures taken by the government to meet the summer demand include planned maintenance of power plants to be shifted to the monsoon season, fast-tracking new capacity additions, and bringing down partial outages of thermal power plants. India's electricity demand has been rising rapidly, driven by economic growth, particularly during hot weather and high-demand periods.

The India Meteorological Department (IMD) has predicted above-normal maximum temperatures over most parts of the country during the 2024 summer.

India has invoked a 21-year-old emergency provision to order its idling gas-fired power stations to operate during the summer, as electricity demand starts to rise. All gas-based power generating stations have been instructed to operationalize their plants from May 1 to June 30 due to a projected increase in electricity demand amid a likely prolonged heat wave this summer. A significant portion of Gas-Based Generating Stations (GBSs) is currently unutilized, primarily due to commercial considerations. The ministry has forecasted a peak power demand of 260 GW this summer (April to June 2024). This decision is part of a series of measures taken by the Centre to ensure that electricity demand in the summer is met. According to a power ministry statement, the order shall remain valid for the generation and supply of electricity from May 1, 2024, to June 30, 2024. To ensure maximum power generation from Gas-Based Generating Stations, the government has issued directions to all Gas-Based Generating Stations under Section 11 of the Electricity Act, 2003, the statement said. The order under Section 11 aims to optimize the availability of power from GBSs during the high-demand period. As per the arrangement, GRID-INDIA will inform GBSs in advance of the number of days for which gas-based power is required. GBSs holding Power Purchase Agreements (PPAs) with distribution licensees shall first offer their power to PPA holders. If the power offered is not utilized by any PPA holder, then it shall be offered in the power market. GBSs not tied to PPAs must offer their generation in the power market. A high-level committee headed by the Chairperson, of the Central Electricity Authority, has been constituted to facilitate the implementation of this direction. Other measures taken by the government to meet the summer demand include planned maintenance of power plants to be shifted to the monsoon season, fast-tracking new capacity additions, and bringing down partial outages of thermal power plants. India's electricity demand has been rising rapidly, driven by economic growth, particularly during hot weather and high-demand periods. The India Meteorological Department (IMD) has predicted above-normal maximum temperatures over most parts of the country during the 2024 summer.

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