'Alternate sources in play to meet peak power demand this summer'

New Delhi: The government expects no power supply issues in the coming peak demand period from the likely absence of around 8-10 gigawatt of gas-fired electricity, as new capacity additions can meet peak demand requirements, people aware of the development said.

India added about 9 GW of coal-based capacity this fiscal year till January with another 3 GW to be commissioned in the coming quarter, a senior government official told ET.

New battery storage capacities of about 2,500 MWh are also expected to come online in the coming quarter, apart from green energy capacities like wind, which will help in meeting peak demand.


India added 4.6 GW of wind energy, 3.3 GW of hydro and 700 MW of nuclear capacity this fiscal year till January. The sources are likely to help in meeting peak demand, especially in the non-solar hours.

According to an internal assessment of the government, the peak power demand is likely to rise to 271 GW this summer compared with around 243 GW last year.

Gas-based power plants account for a small share of India's generation mix but play a critical role in providing flexible and fast-ramping power during peak demand periods. These plants are often deployed during summer nights when power demand remains higher due to cooling requirements.

There is 20 GW of gas-based power capacity of which around 8-10 GW is functional.

Gas allocations to power plants and petrochemical units may be cut off completely, after the government on Tuesday directed diversion of both imported and domestic gas from non-priority sectors to priority users like households to manage a supply crunch due to constraints in the West Asian region.

The power ministry assessed the electricity supply situation following the onset of summer.

"We have sufficient alternative resources," the official said.

The government ensures an adequate power supply situation in the summer season based on projections made by the Grid Controller of India and the Central Electricity Authority.

Power generated from gas-fired units usually costs higher than coal-based and renewable energy, and so is used in high-demand scenarios like in the summer peak for cooling demand.

The government had asked gas-based power companies during high-demand periods in the last few years to maintain electricity generation as per its directions issued under Section 11 of the Electricity Act. The section empowers the government to issue such directions in extraordinary circumstances.