Power Demand and Gas Capacity in 2025

The Power Ministry anticipates increase in peak power demand this season. The expected peak demand is projected to reach 270 gigawatts (GW), up from 250 GW last year. This surge is attributed to the approaching summer months when demand typically rises. To meet this demand, the Ministry has operationalised additional gas-based power capacity.

Current Gas-Based Power Capacity

As of January 31, 2025, the total monitored gas-based power plant capacity stands at 23,636 megawatts (MW). This includes the recent addition of 1,744 MW, primarily from the State-run NTPC. This new capacity will be active from March to October, aligning with the expected peak demand periods.

Operational Strategies for High Demand

The Ministry has implemented schemes for competitive procurement of power from gas-based plants during peak periods. Two such schemes have already been executed. The latest initiative allows for the operationalisation of gas-based capacity starting from March 16 until October 15. Previous years have seen similar operational strategies, with 1,010 MW activated in April-May 2023 and 860 MW in March-June 2024.

Liquefied Natural Gas (LNG) Promotion

To boost the use of Liquefied Natural Gas, the Centre has classified LNG imports under an Open General Licensing (OGL) category. This change permits power plants to import LNG on mutually agreed terms with suppliers, enhancing flexibility and supply options.

Coal Stock Levels

Coal stocks at thermal power plants are currently at a five-year high. As of March 9, 2025, coal reserves totalled 55.9 million tonnes. This quantity is adequate to maintain an 85% plant load factor (PLF) for approximately 19 days. Improved domestic coal supplies have led the Ministry to discontinue advisories on blending imported coal beyond October 15, 2024.

Operational Directives for Summer

The Ministry has instructed imported coal-based (ICB) plants to operate at full capacity until April 2025, with potential extensions until June. Gas-based plants, including those from NTPC, are scheduled to cater to high demand. All generation companies (Gencos) are advised to ensure full availability, barring planned maintenance. Hydro generation will be managed to conserve water for peak demand.

Maintenance Planning

To ensure reliability during high-demand periods, planned maintenance of power units will be minimised. This approach mirrors strategies employed in previous years, aimed at maintaining a steady power supply during critical times.

Questions for UPSC:

1. Critically analyse the impact of increased gas-based power capacity on energy security in India.
2. What are the implications of the Open General Licensing for LNG imports on India’s energy market? Explain.
3. Explain the role of coal stock management in ensuring power supply stability during peak demand periods.
4. What measures can be implemented to improve the efficiency of thermal power plants during high-demand seasons? Discuss with suitable examples.

Answer Hints:

1. Critically analyse the impact of increased gas-based power capacity on energy security in India.

1. Increased gas-based capacity enhances diversification of energy sources, reducing dependence on coal.
2. Operationalising additional MW helps meet rising demand during peak seasons, ensuring stable supply.
3. Gas plants can quickly ramp up production, providing flexibility in response to fluctuating demand.
4. Improved energy security can attract investments in infrastructure and technology for gas supply chains.
5. However, reliance on gas necessitates stable LNG imports and domestic production to avoid supply disruptions.

2. What are the implications of the Open General Licensing for LNG imports on India’s energy market? Explain.

1. Open General Licensing (OGL) allows power plants to import LNG freely, enhancing supply flexibility.
2. This policy encourages competitive pricing and better contractual terms with global suppliers.
3. It promotes the use of cleaner fuel, contributing to India’s transition towards renewable energy sources.
4. Increased LNG imports can mitigate seasonal demand spikes, ensuring consistent power availability.
5. However, dependency on international markets may expose India to price volatility and geopolitical risks.

3. Explain the role of coal stock management in ensuring power supply stability during peak demand periods.

1. Effective coal stock management ensures sufficient fuel availability for thermal power plants during high demand.
2. Current high coal stocks (55.9 million tonnes) provide a buffer to sustain operations during peak periods.
3. Timely coal procurement and blending strategies can optimize supply and reduce reliance on imports.
4. Monitoring stock levels helps identify potential shortages and triggers proactive measures to maintain supply.
5. Coal stock management strategies have historically prevented outages during critical demand spikes.

4. What measures can be implemented to improve the efficiency of thermal power plants during high-demand seasons? Discuss with suitable examples.

1. Implementing advanced technologies like supercritical and ultra-supercritical boilers can enhance efficiency and reduce emissions.
2. Regular maintenance schedules and real-time monitoring systems can minimize downtime and improve operational reliability.
3. Utilizing waste heat recovery systems can capture excess heat for additional energy generation, increasing overall efficiency.
4. Examples include NTPC’s initiatives to enhance operational efficiency through technology upgrades and staff training.
5. Incentivizing co-generation and combined heat and power (CHP) systems can further optimize thermal plant performance.