Firms told to run gas units as power ask rises

Centre directs companies to operate underutilised gasbased power plants in May and June, and extend operations of imported coalbased plants until October 15 to meet the anticipated surge in electricity demand during summer months when IMD expects abovenormal high temperatures

The government has directed companies to operate underutilised gasbased power plants in May and June, and extend operations of imported coalbased plants until October 15 to meet anticipated high demand for electricity, as per two government orders.

India registered an 8% rise in electricity consumption in the 12 months ended March 31, and demand is expected to rise in the hot summer months.

In an order dated Friday, the government for the first time invoked an emergency clause mandating companies to operate underutilised gasbased power plants by importing the fuel.

Idle capacity

India has about 24 gigawatts (GWs) of gasbased power plants that have been idling or underused for decades due to lack of fuel. Power stations would be informed two weeks in advance about the requirements so they could import gas, the government said in its order.

“Gasbased power plants are required to meet the anticipated surge in power consumption in summer months,” it said.

The Power Ministry has projected 260 GW peak power demand this summer (April to June ). Peak power demand touched an alltime high of 243 GW in September last year.

Torrent and NTPC are among the big gasbased power station companies.

In another order, seen by Reuters on Saturday, the Centre invoked an emergency clause directing firms such as Tata Power and Adani Power — which operate imported coalfired plants with a capacity of almost 16 GW — to continue operations.

As per the arrangement, GRIDINDIA will inform gasbased units in advance, of the number of days for which gasbased power is required. Gasbased units holding Power Purchase Agreements (PPAs) with distribution licensees shall first offer their power to PPA holders.

If the power offered is not utilised by any PPA holder, then it shall be offered in the power market.

Units not tied to PPAs must offer their output in the power market. A highlevel committee headed by Chairperson, Central Electricity Authority will facilitate the implementation of this direction.

The India Meteorological Department has predicted abovenormal maximum temperatures over most parts of the country during summer.

(With inputs from PTI)