The US-Iran war and the energy crisis arising out of it have pushed India towards coal to meet its peak power demand during the summer as liquefied natural gas (LNG) supplies tighten amid global supply and production disruptions.
India usually pushes power plants to ramp up electricity generation during the peak summer months of April, May and June, including the costly gas-fired generation. The power generation firms receive government subsidies to keep a check on power prices.
However, according to a Reuters report, the government has not received any bids from power companies to supply 12,000 megawatt-hour of gas-generated electricity for the peak summer months.
The government’s tender for the same is set to close in the next two days.
NTPC, one of India’s leading state-run power generation companies, has already informed the grid regulator that it will not be able to supply gas-fired power during the April-June period.
The report further stated that the Ministry of Power has advised coal power generators to ensure their plants are kept running during the peak summer months.
Earlier in the day, the government announced several measures to deal with the looming LPG crisis, invoking emergency provisions under the Essential Commodities Act (ECA) to ensure uninterrupted supply to domestic consumers.
The decision was taken amid the intensifying Middle East conflict triggered by the US and Israeli strikes on Iran and the latter’s retaliation.
The conflict has disrupted shipping through the Strait of Hormuz, a key route for global oil and gas supplies.
India, which imports about 85 per cent of its crude and nearly half of its natural gas, is vulnerable to such disruptions.