In a move to address the anticipated surge in electricity demand during the 2024 summer season, the central government has mandated the activation of gas-based power plants across the country. Under Section 11 of the Electricity Act, 2003, which allows the government to direct power stations to operate under extraordinary circumstances, these plants are to be fully operational to ensure sufficient power supply.
Many of these gas-based generating stations (GBSs) have remained unutilized due to commercial factors. However, similar to directives previously issued for imported-coal-based power plants, the new order seeks to maximize their output from May 1 to June 30, 2024.
GRID-INDIA, the central authority, will notify the gas-based stations well in advance about the specific days when their power generation will be required. Stations with existing Power Purchase Agreements (PPAs) must initially offer their generated power to their PPA holders. Any surplus power not purchased by PPA holders will then be available for sale on the power market. Stations without PPAs are directed to directly offer their power in the open market.
To oversee this initiative, a high-level committee led by the Chairperson of the Central Electricity Authority has been established. This committee is tasked with facilitating the implementation of the government’s directive.
Union minister for power and new & renewable energy R. K. Singh held a series of meetings, underscoring the critical need for these measures to ensure that the country’s power supply remains uninterrupted during the peak demand of the upcoming hot weather season.
In addition to reactivating gas-based power plants, the government has outlined a comprehensive strategy to bolster power availability which includes delaying planned maintenance of power plants to the monsoon season, accelerating new capacity additions, reducing partial outages at thermal power plants, and utilizing surplus power from captive generating stations. There is also a plan to shift hydro power generation to peak hours and ensure coal availability through advance planning by all stakeholders.
These measures come in response to forecasts by the Indian Meteorological Department, which predict above-normal maximum temperatures across most parts of India during the hot weather period in 2024, potentially leading to heightened electricity demand driven by economic growth and increased use of cooling systems.
