India invokes a 21-year-old power law as it braces for one of the worst heatwaves this year.
Notable because
India has witnessed a staggering surge (78 per cent) in peak power demand, soaring from 136 GW in 2013–14 to 243 GW in 2023–24, in addition to peak demand shifts to summer months. Anticipating a further 7 per cent spike in peak demand in summer 2024 (projected at 260 GW), the Ministry of Power’s order to operationalise all gas-based generation facilities mirrors prior measures, such as extending the mandate on imported coal power plants to operate at full capacity. These measures ensure resource adequacy amid escalating peak power demands.
What to look out for in the months ahead
Due to its non-competitive tariff, gas-based generation has a marginal share in India’s capacity mix.
Will there be further efforts – such as renewable energy round-the-clock (RE-RTC) and firm and dispatchable renewable energy (FDRE) – to utilise RE resources in fulfilling the ever-increasing peak power demand?
In the long term, can decentralised renewable energy (DRE) models – such as virtual net metering and group net metering – play a role in managing peak demand in residential areas?