Gas-based plants directed to run from May 1 to Jun 30 as power demand rises.
Government mandates gas power plants to operate May-June due to rising demand from summer heat.
The government has instructed all gas-based power plants to commence operations from May 1 to June 30 due to an expected increase in electricity demand caused by a potential prolonged heat wave this summer. Currently, a significant portion of Gas-Based Generating Stations (GBSs) remains inactive mainly due to commercial reasons. The ministry anticipates a peak power demand of 260 GW during this summer (April to June 2024), compared to the previous peak of 243 GW in September last year. This directive is part of a series of actions by the government to ensure adequate electricity supply during the summer months. According to a statement from the power ministry, this directive will be effective from May 1, 2024, to June 30, 2024.
The government has invoked Section 11 of the Electricity Act, of 2003, which allows it to instruct generating companies to operate and maintain their plants in exceptional circumstances. This decision aims to maximize power generation from gas-based plants during the upcoming high-demand period, similar to measures taken for imported coal-based plants. GRID-INDIA will inform gas-based plants in advance about the duration for which their power will be required.
Gas-based plants with Power Purchase Agreements (PPAs) must prioritize offering their power to PPA holders. Any surplus power not utilized by PPA holders will be offered in the power market. Plants without PPAs are required to offer their generation in the power market. Additionally, a high-level committee chaired by the Central Electricity Authority has been formed to oversee the implementation of this directive.
Other government initiatives to address summer electricity demand include rescheduling planned maintenance of power plants to coincide with the monsoon season, expediting new capacity additions, and reducing partial outages of thermal power plants. India's electricity demand has been steadily increasing, particularly during hot weather and high-demand periods, driven by economic growth. The India Meteorological Department (IMD) has forecasted above-normal maximum temperatures across most parts of the country for the 2024 summer.
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