Imminent heatwaves: India asks companies to fire-up power plants to meet rising electricity demand
Business
The South Asian nation registered an 8pc rise in consumption in the last financial year
- Orders conver underutilised gas-fired and coal-based plants
- The country is likely to experience more heatwave days than normal between April and June
NEW DELHI (Reuters) – India has asked companies to operate underutilised gas-fired power plants in May and June, and extend operations of imported coal-based plants until Oct 15 to meet anticipated high demand for electricity, according to two government orders.
The South Asian nation registered an 8 per cent rise in electricity consumption in the financial year that ended last month, and demand is expected to rise in the hot summer months.
In an order dated Friday, the government for the first time invoked an emergency clause mandating companies to operate underutilised gas-based power plants by importing the fuel.
India has about 24 gigawatts of gas-based power plants that have been idling or underused for decades due to lack of fuel.
Power stations will be informed two weeks in advance about the requirements so they can import gas, the order says.
"Gas-based power plants are required to meet the anticipated surge in power consumption in summer months," the order says.
Torrent and NTPC are among the big gas-based power station companies.
In another order, seen by Reuters on Saturday, the government invoked an emergency clause directing companies such as Tata Power and Adani Power – which are operating imported coal-fired plants with a capacity of nearly 16 gigawatts – to continue operations.
The plants were initially allowed to operate until June 30.
The directives come as India is likely to experience more heatwave days than normal between April and June, potentially hitting agricultural production and hampering government efforts to bring down food inflation.
Read more: India braces for heatwaves with impact seen on inflation, election
A heatwave for the third year in a row could dent production of wheat, rapeseed and chickpeas, and also lift power demand above supply during the summer season. India is the world's second largest wheat producer.
It was earlier reported that power demand usually spikes during the summer season and to ensure undisrupted supplies, power generation stations' maintenance schedule has been either deferred or has already been completed.
