Govt orders gas-based power plants to run from May 1 to June 30 in view of summer demand peak
Upstox
2 min read • Updated: April 13, 2024, 3:37 PM
Summary
The power ministry has projected a peak power demand of 260 gigawatts (GW) this summer, which is 7% higher as compared to the peak demand of 243 GW scaled last year. In view of the high demand, it had earlier asked all imported coal-based power plants to fully operate till June 30.
The central government, using the powers vested with it under the Electricity Act 2003, has directed gas-based power plants to fully operate from May 1 to June 30 in view of the peak in demand during the summer season.
The order “aims to optimise the availability of power from gas-based generating stations during the ensuing high demand period,” the Ministry of Power said in a release.
Those gas-based power plants that hold power purchase agreements with distribution licensees should first offer their generated power to them, it added.
“If the power offered is not utilised by any PPA holder, then it shall be offered in the power market,” the minister noted, while further stating that the power plants not tied to PPAs must offer their generation in the power market.
The order has been issued under Section 11 of the Electricity Act, that allows the Centre to direct a power generating company to operate under extraordinary circumstances.
Earlier, the government had asked imported coal-based power plants to mandatorily operate at full capacity till June 30. The order has now been extended till October 15, news agency Reuters reported. An official announcement, however, was awaited at the time of filing this report.
Bracing for hot summer
The power ministry has projected a peak power demand of 260 gigawatts (GW) this summer, which is 7% higher as compared to the peak demand of 243 GW scaled last year.
"The electricity demand has been rising rapidly, driven by economic growth, particularly during hot-weather and high-demand periods," the ministry said. The above-normal temperatures projected for this summer, by the India Meteorological Department, also suggests that the power demand will accelerate, it pointed out.
In view of the surge in demand, the government has deferred the planned maintenance of power plants to the monsoon season. It has also enacted measures to expedite new capacity additions, and reduce partial outages at thermal power plants, the release noted.