As India’s electricity demand is expected to soar in the upcoming summer months, the country is gearing up to ensure reliable and outage-free power. Estimates suggest that peak demand could breach the 260 GW mark – an increase of nearly 7 per cent over the previous peak.
First, adequate coal availability is being ensured at the thermal power plants. The advisory on blending with imported coal at 6 per cent has been extended till June 2024. The Ministry of Power (MoP) has put forward an estimated coal demand of 874 mt for fiscal year 2024 from the power sector, against a demand of 821 mt in the previous year. At the same time, an increase in the number of freight trains to haul coal to thermal power plants, from around 500 currently to
600-650, is being sought. The government has also extended the imposition of Section 11 of the Electricity Act, 2002 till June 2024, directing all imported coalbased thermal plants to generate at their full capacity.
Second, like last year, the MoP is tapping gas-based power generation to meet the summer peak. It has directed NTPC to run its gas-based capacity (around 5,000 MW) during the “crunch period” – projected to last from March 16 to June 30 for fiscal year 2024. Another 4,000 MW of gas-based power is being bought by NTPC Vidyut Vyapar Nigam Limited through tenders.
Third, in a bid to optimise the use of available power in the country, the government
has amended the late payment surcharge rules, directing power generators to offer surplus power (within the declared generation capacity but not requisitioned by discoms) on the power exchanges. Generating companies will be eligible to claim fixed charges on surplus power only if they offer surplus power on the exchanges.
Despite these efforts, however, a few areas of concern remain. Although coal production and availability of racks are being ramped up, logistical constraints and rail network congestion could hamper coal availability at power plants. Tackling night-time peak demand, when power generation from renewable energy sources is negligible, needs attention. Overall, as power demand soars amidst rising heat in the next couple of months, the government’s initiatives aimed at increasing power availability in the country will be put to the test.