By Manish Gupta

Gas-based power plants are ready to meet any power deficit during the peak demand period this summer, and availability of natural gas is being ensured by state-owned GAIL India and country’s top gas importer Petronet LNG Ltd.

Both GAIL and Petronet have issued several tenders to import liquefied natural gas (LNG) last week for deliveries in May and June. Sector analysts believe the underutilised gas-based power plants will be used to fill any shortage.

“Idea is to improve the energy generation so as to meet the spike in the energy demand that we are anticipating because of the heat wave… You may see some improvement in capacity utilisation of gas-based power plants.

Also read: MSME listing: How to migrate from NSE SME platform to main board? Check revised criteria

“To meet the peak deficit, respective utilities can tap this (gas) power on high price day ahead basis from the power exchange market,” said Girishkumar Kadam, senior vice president and co-group head, ICRA.

India’s electricity demand saw an all-time of 218 GW last week on April 18, of which the power sector could meet record demand of 216 GW, leaving a deficit of 2,021 MW. Last year, the highest demand met was 212 GW on June 10.

Gas-based power plants of NTPC Ltd, India’s largest power producer, are all set to start power production when required, an official said. NTPC has 6,511 MW of gas-based power capacity and has assured gas supply from GAIL.

While NTPC is directed by the ministry of power to run 5,000 MW gas-based power stations during the crunch period, its subsidiary NTPC Vidyut Vyapar Nigam Ltd will procure 4,000 MW gas power from other state-run plants.

There are more than 60 gas-based power plants in the country with a total capacity of about 25 GW, which is slightly above 6% of India’s total installed power generation capacity. The government wants the share to rise to 15%.

However, 28 gas-based plants with about 10 GW capacity had zero generation and the overall plant load factor (PLF) of all gas-based power plants was below 15% in FY23 due to lack of domestic gas and high price of imported gas.

Also read: Public procurement: Govt purchases from MSMEs cross Rs 4 lakh crore through GeM portal

With barely half of the current gas consumption coming from local production, which mostly feeds the fertilizer sector and city gas distributors, dependence on gas-based power plants can only be interim and not a long term solution.

“Gas-based power plants can only provide temporary relief during the summer months. Imported gas is not favourable in terms of cost economics,” said Kadam.