Govt directs gas power plants to run at full capacity to meet record summer electricity demand

“Gas plants gear up as power demand set to surge this summer”

With electricity demand projected to hit record highs over the summer months, the government has directed all gas-based power plants in the country to operate at full capacity from May 1st to June 30th.

According to reports, gas-fired power stations with a combined output of 25 GW will likely be functioning during this peak demand period. However, high fuel costs mean many units could run at a loss despite the directive.

Met agency forecasts warn of higher temperatures and more heat waves across large parts of India until late June. To boost available power supplies and avoid shortages, gas plants have now been instructed to generate electricity under Section 11 of the Electricity Act.

A newly formed panel led by the chair of the Central Electricity Authority will facilitate implementation. Though tariff implications were not disclosed, grid operators will update plants on operating days in advance and allow first rights to those with existing supply agreements.

Any unused power must then be offered on electricity exchanges. Units without such contracts must similarly market their production independently. The measures aim to optimize gas generation during the looming high demand season across May and June.

Coal India has also raised its supply target for power utilities in the first quarter, signaling ramped up coal movement. With indistries recovering and investments rising, there is consensus more electricity is required to fuel continuing economic growth throughout the summer season. Only coordinated, all-hands-on-deck efforts can ensure adequate power for the nation.