Power Min mulls running some gas plants only for peak demand

To address the issue of fuel shortage, the Power Ministry is mulling operating certain gas-based plants only at a time when the electricity demand is at peak.

"The issue of gas is troublesome, the issue of gas shortage is all around but one has to find a solution," a Power Ministry official said.

He added that the Ministry is looking at the possibility of having some gas plants as peaking power plants. It is also looking at whether that needs a special chapter in the new SBDs (standard bidding documents).

Peaking power plants are the plants that generally run only when there is peak demand for electricity.

"We can look at devoting certain plants to certain areas with peaking power capacities, we are working with state governments to come up with a possibility on that," he said.

Around 18,000 MW gas-based capacity is stranded due to want of gas.

     
However, there may be some respite for the gas-starved stations after the recently announced doubling of natural gas prices to $8.4 from April 1 next year. At the same time it will make power costlier.

     
The Cabinet Committee on Economic Affairs (CCEA), last week approved near doubling of natural gas prices to  $8.4 from April 1 next year.

These prices have been revised as per the formula suggested by a panel headed by Prime Minister's economic advisor C Rangarajan.