Govt asks all gas-based plants to be operational From May 1 to June 30

Earlier, the Power Ministry had issued a similar fiat to imported coal based plants, asking them run at full capacity till October 15. The weather department had warned of more-than-usual instances of heat weaves and above-normal maximum temperature during the current summer. While the demand for electricity has been rising at a fast pace in recent quarters, peak demand is expected to reach a record 250 GW in the summer months.

The directions to gas-based units have been issued under Section 11 of the Electricity Act, 2003, which states, “The government may specify that a generating company shall, in extraordinary circumstances, operate and maintain any generating station in accordance with the directions of the government.”

“The order under Section 11, which is on similar lines as done for imported-coal-based power plants, aims to optimise the availability of power from gas-based generating stations during the ensuing high demand period,” the government said.

Currently, a significant portion of gas-based installed capacity is unutilised, primarily due to commercial considerations.

GRID India will inform all gas-based generating stations of the number of days for which the gas-based power is required, in advance. However, gas-based plants holding power purchase agreement with distribution licensees shall be allowed to offer their power first to the PPA holders.

“If the power offered is not utilised by any PPA holder, then it shall be offered in the power market,” the government said. “Gas-based generating stations not tied to PPAs must offer their generation in the power market.”

The government has also formed a high-level committee headed by chairperson, Central Electricity Authority, to facilitate the implementation of the direction.

Prior to this, the government has also announced several other measures, including expedition of new capacities, shifting of maintenance of power plants to monsoon season, and supply of surplus power to the exchanges, in its attempt to ensure adequate power supply amid rising summer demand.

The Indian Meteorological Department (IMD) has predicted above-normal maximum temperatures over most parts of the country during the 2024 hot weather season. The peak demand this summer is expected to touch 260 GW, as per government’s projections.

All these measures are being taken in this context, in anticipation of the high electricity demand during the season, the government said. The moves are also in recognition of the need to avoid an energy crisis at a a time many industries are witnessing higher capacity utilisation and an investment cycle is believed to have begun.

Coal India, the country’s major coal mining and producing company, has also increased its coal supply target this year. The company aims to supply 171.4 million tonnes of coal to the power sector in just the first quarter of the current financial year, up 11% from 153.4 million tonnes supplied in Q1FY24, said a source who did not wish to be identified.

For the financial year 2024-25 the power ministry has placed a demand of 874 million tonnes of coal. Of this, Coal India is expected to supply 661 million tonnes of coal, according to sources. (With FE)