India has invoked emergency measures that require gas-fired power stations to produce more in order to ensure uninterrupted electricity supply during the summer season, as soaring temperatures boost demand.
The nation’s grid controller will assess the periods of high demand when the gas-based plants will be required to generate electricity, according to a power ministry order seen by Bloomberg. The units will get a two-week notice, giving them enough time to arrange fuel, the order said.
India’s gas-fired power facilities, with a combined capacity of more than 20 gigawatts, operate at about a fifth of their full potential as they struggle to source the fuel at rates they can afford in a price-sensitive electricity market. The nation’s peak power demand reached a record high of 250 gigawatts last summer and the ministry expects this to hit a new peak this year.
The power produced under the emergency guidelines — effective from May 26 until June 30 — will have assured offtake and be covered under a payment security mechanism, according to the order. The government invoked section 11 of the electricity law that allows it to force any power station to operate as directed in extraordinary circumstances, such as a natural calamity, a threat to national security or any public order.
“In public interest, it is imperative to ensure optimal utilization of all available generation resources to meet the growing power requirements,” the order said. “Despite leveraging all available resources, occasional power shortages continue to be observed in certain regions during non-solar periods.”
The power ministry didn’t immediately respond to an emailed request for comment.
Electricity demand in the country has outpaced generation growth, resulting in shortages when consumption surges. Over the past decade, the expansion in capacity has been led by solar power, which now accounts for more than a fifth of the total fleet of 472 gigawatts. That makes the nation vulnerable to blackouts during evenings.
“We expect liquefied natural gas demand to rise substantially from the third week of May and in June as heat waves pick up,” said Akshay Kumar Singh, chief executive officer at Petronet LNG Ltd., an Indian supplier of imported gas. “We are expecting our Dahej terminal to operate at maximum capacity,” he said on a call Monday.
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