Govt Orders Gas-Based Plants To Ramp Up Operations Amid Soaring Electricity Demand

The ministry has forecasted a peak power demand of 260 GW for the summer months (April to June 2024), surpassing the previous all-time high of 243 GW recorded in September last year

The government has asked all the gas-based power generating stations to start operations from May 1 to June 30 to tackle the expected prolonged heat wave this summer, which will eventually result in an increase in electricity demand. A major portion of Gas-Based Generating Stations (GBSs) remains underutilised, primarily due to commercial factors.

The ministry has forecasted a peak power demand of 260 GW for the summer months (April to June 2024), surpassing the previous all-time high of 243 GW recorded in September last year.

In line with a series of initiatives by the Centre to ensure adequate electricity supply during the summer, the decision to activate Gas-Based Generating Stations (GBSs) has been made.

As per a statement from the power ministry, this directive will be effective for the generation and distribution of electricity from May 1, 2024, to June 30, 2024. The statement reads, "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, under which the appropriate government may specify that a generating company shall, in extraordinary circumstances operate and maintain any generating station in accordance with the directions of that government.”

The directive under Section 11 mirrors the measures taken for imported coal-based power plants. It seeks to maximise the utilisation of power from Gas-Based Generating Stations (GBSs) during the upcoming period of high demand.

According to the arrangement, GRID-INDIA will provide advance notice to GBSs regarding the duration for which gas-based power will be needed. GBSs with Power Purchase Agreements (PPAs) with distribution licensees will have priority in offering their power.

Any surplus power not utilised by PPA holders will be made available in the power market.

Gas-Based Generating Stations (GBSs) without Power Purchase Agreements (PPAs) are required to offer their electricity generation in the power market. To oversee the implementation of this directive, a high-level committee chaired by the Chairperson of the Central Electricity Authority, has been established.

Additional measures taken by the government to address the summer demand include rescheduling planned maintenance of power plants to coincide with the monsoon season, expediting the process of adding new capacity, and minimising partial outages of thermal power plants.

India's electricity demand is experiencing rapid growth, fueled by economic expansion, especially during periods of hot weather and high demand. The India Meteorological Department (IMD) has forecasted above-normal maximum temperatures across most regions of the country for the summer of 2024.