Centre directs gas-based power plants to start ops amid rising summer demand

Highlights

In order to help meet the high electricity demand in the country during the summer season, the government has decided to operationalise gas-based power plants, the Ministry of Power said on Saturday.

New Delhi: In order to help meet the high electricity demand in the country during the summer season, the government has decided to operationalise gas-based power plants, the Ministry of Power said on Saturday.

“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 this section the state or Central 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 Power Ministry said.

A significant capacity of the Gas-Based Generating Stations (GBSs) is currently unutilised, primarily due to commercial considerations. 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 order shall remain valid for generation and supply of power from May 1, 2024 to June 30, 2024,” the Power Ministry said.

The Power Ministry said that GRID-INDIA will inform the gas-based generating stations in advance, of the number of days for which gas-based power is required.

Gas-based generating stations holding Power Purchase Agreements (PPAs) with distribution licensees will first offer their power to PPA holders. If the power offered is not utilised by any PPA holder, then it will be offered in the power market.

Gas-based generating stations not tied to PPAs must offer their generation in the power market.

A high-level committee headed by Chairperson, the Central Electricity Authority has been constituted to facilitate the implementation of this direction.

The decision to operationalise gas-based generating stations is part of a series of measures taken by the government, to ensure that the electricity demand in the summer season is met.

Union Minister for Power and New & Renewable Energy R. K. Singh held a series of meetings on this, emphasising the need for ensuring adequate availability of power to meet the load during the hot-weather season, according to an official statement.