https://indianmasterminds.com

ADVERTISEMENT
ADVERTISEMENT

Centre Invokes Section 11 of Electricity Act to Maximise Gas-Based Power Amid Soaring Demand – Full Details Inside

Power Ministry directs gas-based plants to operate during peak summer; GRID India to coordinate dispatch, tariff mechanism revised.
Indian Masterminds Stories

Power Ministry directs gas-based plants to operate during peak summer; GRID India to coordinate dispatch, tariff mechanism revised

New Delhi: Amid soaring temperatures and an unprecedented surge in electricity demand across India, the Central government has invoked Section 11 of the Electricity Act, 2003 to mandate the operation of gas-based power plants during the high-demand months of May and June 2025. The move, announced via a Ministry of Power notification dated May 16, is aimed at ensuring uninterrupted power supply and grid stability as the nation grapples with peak summer loads.

India’s power demand, driven by rapid economic growth and prolonged heatwaves, is expected to touch 277 GW during non-solar hours this summer. For comparison, last year’s peak demand touched 250 GW in May 2024.

All Unutilised Gas-Based Capacity to Be Mobilised

The Power Ministry had earlier issued a similar directive in April 2024, and now, citing the prevailing demand-supply mismatch and predictions of above-normal temperatures by the Indian Meteorological Department, the ministry has extended the mandate.

As per the latest directive, all Gas-Based Generating Stations (GBSs) have been asked to maximise output during the high-demand period. These plants, some of which remain underutilised due to cost considerations, will now play a critical role in bolstering supply.

GRID India to Coordinate and Notify Gencos
The GRID-INDIA, under the Ministry of Power, has been tasked with advance planning. It will:

Notify gas-based stations of expected high-demand days at least 14 days in advance.

Schedule these plants on a D-1 basis (one day prior), guaranteeing dispatch at a minimum of 50% capacity round the clock during designated periods.

Power Supply and Tariff Mechanism
Power from gas-based stations will first be offered to existing PPA holders. If some PPA holders do not schedule their share, other discoms will be offered the power. Unsold power will then be made available on power exchanges or dispatched directly by GRID India for grid support.

To address cost recovery, a tariff committee chaired by the Central Electricity Authority (CEA) will determine the Energy Charge Rate (ECR), accounting for all prudent costs such as gas price, transportation, re-gasification, duties, and taxes. Benchmark tariffs will be revised every 15 days.

Surplus capacity offered to the market or used for grid support cannot be priced above 120% of ECR plus transmission charges, the ministry clarified.

Fixed Cost Coverage and Compensation
In case of market sale or grid dispatch, any revenue above ECR will first cover the fixed costs of the generator. Any unrecovered fixed costs will remain the liability of PPA holders, ensuring financial stability for the GBSs. When dispatched for grid support, GBSs will be compensated at the offer price.

Background

India currently operates around 25 GW of gas-based power capacity, much of which lies idle due to high fuel costs and lack of long-term gas supply. However, during extreme peak demand periods—particularly in summer—these units are called upon to supplement supply.

With the invocation of Section 11, the government has asserted its authority to regulate power generation in public interest, ensuring that every available resource is tapped to meet growing electricity needs.


Indian Masterminds Stories
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
Punjab CM Interactive Session at MGSIPA
Punjab Power Engineers Oppose IAS Appointments as PSPCL, PSTCL CMDs; Standoff Brews with Govt
Haryana Police Martyrs
Haryana Transfers 24 IPS and 5 HPS Officers; SPs of 8 Districts Replaced, Dr Arpit Jain Appointed SP Nuh
West bengal Government WB
West Bengal Govt Seeks EC Approval for Deployment of 12 IPS Officers to Fill Vacant Key Posts
ias  Rajendrakumar Patel
Who Is IAS Rajendrakumar Patel? Gujarat HC Seeks ED Reply on Bail Plea in Money Laundering Case
Assam Rifles Raising Day 2026
India Defence Exports Hit Record ₹38,424 Crore in FY 2025-26, Up 62.66%; DPSUs Lead with 151% Growth
Bihar govt resized
Bihar IAS-IPS Asset Disclosure 2025: Top Bureaucrats Reveal Wealth, Gold Holdings, Family Investments and Property Details
PFC logo resized Power Finance Corporation Ltd
PFC Independent Director Bhaskar Bhattacharya Resigns to Contest West Bengal Assembly Elections
NTPC
NTPC Mining Limited Achieves Record 44.16 MMT Coal Production in FY 2025-26, Expands Mining Capacity
ADVERTISEMENT
ADVERTISEMENT
Videos
Ajay Kumar Choudhary
Ajay Kumar Choudhary : The IPS Who Sees The World Like a Canvas
WhatsApp Image 2026-03-28 at 6.22
Nemesis of Law-breakers, in Cities & Forests
Ajay Choudhary IPS
From IIT to IPS: Ajay Choudhary on AI, Policing & the Future of Law Enforcement
ADVERTISEMENT
UPSC Stories
Deepanshu Jindal AIR 38
UPSC Success Story: How Deepanshu Jindal Cleared CSE 2025 with AIR 38
Deepanshu Jindal secured AIR 38 in UPSC CSE 2025 after overcoming personal loss, close misses, and multiple...
Neha Panchal UPPCS
From Motherhood to Merit List: How Neha Panchal Turned Eight Years of Struggle into Rank 1 in UPPCS-2024
Neha Panchal topped UPPCS 2024 after eight years of preparation, balancing motherhood, family responsibilities,...
Pulkit Jain UPSC CSE 2025
How Bhopal’s Pulkit Jain Overcame FOMO and Cracked UPSC
Pulkit Jain from Bhopal cracked UPSC in his fourth attempt after missing the final list by just 3 marks...
CSR NEWS
ews
DVK Foundation Launches Scholarship Programme for EWS Students at BGIS Vrindavan
BGIS Vrindavan Partners with DVK Foundation for EWS Student Scholarships
ECIL
ECIL Completes CSR Project by Handing Over Retaining Wall at Rastriya Vidya Kendra, Telangana
ECIL Enhances Student Safety and School Infrastructure in Medchal-Malkajgiri District Through Corporate...
ntpc
NTPC WR-I Launches ₹7.64 Crore CSR Project to Renovate IPD Blocks at N.M. Wadia Hospital, Solapur
Renovation of Buildings A, B, and Annex to Strengthen Healthcare Infrastructure, Improve Patient Care,...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
Punjab CM Interactive Session at MGSIPA
Punjab Power Engineers Oppose IAS Appointments as PSPCL, PSTCL CMDs; Standoff Brews with Govt
Haryana Police Martyrs
Haryana Transfers 24 IPS and 5 HPS Officers; SPs of 8 Districts Replaced, Dr Arpit Jain Appointed SP Nuh
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
Ajay Kumar Choudhary
WhatsApp Image 2026-03-28 at 6.22
Ajay Choudhary IPS
ADVERTISEMENT
ADVERTISEMENT