In order to help meet the high electricity demand in the country during the summer season, the Centre has decided to operationalise gas-based power plants.

To ensure maximum power generation from gas-based generating stations, the Centre 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).

The Ministry of Power pointed out that a significant portion 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 to June 30.

As per the arrangement, 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 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. Gas-Based Generating Stations not tied to PPAs must offer their generation in the power market. A high-level committee headed by Chairperson, 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 of India, 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.

The Centre has taken several measures in recent months to meet the summer demand, apart from the decision on gas-based generating stations.

India’s electricity demand has been rising rapidly, driven by economic growth, particularly during hot-weather and high-demand periods. The Indian Meteorological Department (IMD) has predicted above-normal maximum temperatures over most parts of the country during the 2024 hot weather season.