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Government asks all gas-based plants to be operational as electricity demand surges

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NEW DELHI: The government has directed all gas-based power plants to become operational from May 1 to June 30 as electricity demand increased due to prolonged heat wave this summer. The power ministry has estimated a peak power demand of 260 GW for this summer (April to June 2024), surpassing the previous record of 243 GW in September last year.
Currently, a large portion of Gas-Based Generating Stations (GBSs) is not in use primarily due to commercial reasons.
According to the ministry, the directive will be in effect for the generation and supply of electricity from May 1, 2024, to June 30, 2024.
“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 ministry said in a statement.
The order, similar to the one for imported coal-based plants, aims to enhance power availability from GBSs during the upcoming high-demand period. GRID-INDIA will notify GBSs in advance about the days when gas-based power is needed.
GBSs with Power Purchase Agreements (PPAs) with distribution licensees will prioritize offering their power to PPA holders. Any excess power will be made available in the power market. GBSs without PPAs must also offer their generation in the power market.
A committee chaired by the Central Electricity Authority is overseeing the implementation of this directive. Other government measures to meet summer demand include rescheduling power plant maintenance to the monsoon season, accelerating new capacity additions, and reducing partial outages of thermal power plants.
India’s electricity demand has been escalating, driven by economic growth, particularly during hot weather and high-demand periods. The India Meteorological Department (IMD) has forecast above-normal maximum temperatures across most regions of the country during the upcoming 2024 summer.


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