Exclusive: Government gave instructions, GAIL and Petronet LNG may get additional orders
According to exclusive information received by CNBC Awaaz quoting sources, this thermal gas based power plant may have to purchase additional gas because the Power Ministry has instructed them to be ready for more electricity production. To meet the increasing demand for electricity, the government is once again relying on gas-based power plants.
Demand for gas for electricity will increase
Demand for gas for electricity will increase. In such a situation, the gas based power plant may have to purchase additional gas. It is known that power companies get gas from GAIL and Petronet LNG. This means that both these companies may get additional orders. Instructions have been given to gas based power plants to be ready to increase production.
Power Minister issued instructions
The Power Minister has given instructions during the meeting with the power companies. Section 11 of the Electricity Act can be implemented to increase production. Under Section 11, power companies are required to have fixed production. In fact, in view of the increasing demand for electricity in summer, the government is emphasizing on increasing the supply of electricity. If PLF increases from 22 percent to 35 percent, additional 10-15 mmscmd gas is required.
About 60 gas based power plants in the country
It is noteworthy that there are about 60 gas based power plants in the country. The total capacity of the gas based power plant is 23,845 MW. Half the plants did not generate any electricity in 2022-23. Last year, when the heat increased, additional electricity was generated from NTPC’s gas-based plants. There is an agreement with NTPC for the supply of gas from GAIL. Last year, peak demand for electricity had increased by 13.9 percent.
