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
Haryana gov resized
Haryana Govt Transfers 21 Officers: 19 IAS, 1 IRS, 1 HCS Get New Postings; Satpal Sharma Appointed DC Panchkula
Bihar cabinet
Bihar: Construction Begins on ₹29.31 Cr Khadi Mall cum Urban Haat in Darbhanga; 1,200 Jobs Expected
Pushkar Singh Dhami
25,000 Govt Jobs, No Exam Paper Leaks & Foreign Placements: How Dhami Govt Transformed Youth Employment in Uttarakhand
Sustainable Aviation Fuel
India to Host SAF Conclave & Awards 2025, Spotlighting Farm-to-Aviation Fuel Economy and Green Aviation Roadmap
Yogi Adityanth
CM Yogi Adityanath Launches Rural Bus Service and Major Transport Reforms in Uttar Pradesh Under 'Mukhyamantri Gramin Janta Seva'
Gujarat News
Gujarat Strengthens Global Connectivity with USD 69 Billion FDI, Prepares for Vibrant Gujarat Regional Conferences, 1st To Be in Mehsana
Coconut
Gujarat Emerges as a Leading Coconut-Producing State with Over 26 Crore Units This Year, State-backed Programs Making Difference
Bihar Road
Bihar Secures Rs 675 Crore CRIF Approval for Road Projects Across Eight Districts, Centre & State Govt Collaborate To Develop Infra
ADVERTISEMENT
ADVERTISEMENT
Videos
IPS Shikha Goel
Decoding Digital Dangers: Insights from IPS Shikha Goel on Cyber Crimes
IPS Mukesh Kumar Bhamoo
Managing Elections, Communal Tensions, and Public Safety – Meet IPS Mukesh Kumar Bhamoo | Video Interview
WhatsApp Image 2025-08-25 at 13.56
Operation Hunt: IPS Dr. Karanraj Vaghela’s Mission to Nab Valsad’s Most Wanted
ADVERTISEMENT
UPSC Stories
Ishwarlal Gurjar UPSC
10th Grade Failure to Indian Police Service: Ishwarlal Gurjar’s UPSC Success Path
Read the inspiring journey of Ishwarlal Gurjar from a small village in Rajasthan to becoming an IPS officer....
IAS Minnu P M
“Lazy, Sleepy, Yet Determined”: Minnu P M’s Honest Take on Cracking UPSC
Minnu PM, once a clerk in Kerala Police, cleared UPSC with AIR 150 after five years of struggle. Her...
IPS Ashish Tiwari
From IIT and Investment Banking to Public Service, Meet IPS Ashish Tiwari 
Ashish Tiwari, IIT graduate and former investment banker, chose public service over global finance. As...
Social Media
IAS Sakshi Sawhney Amritsar DC
Punjab Floods: IAS Sakshi Sawhney’s Emotional Appeal to Elderly Man Wins Hearts, Video of Humanity Goes Viral
Viral Video Captures Emotional Moment as Amritsar DC Shows Sensitivity and Courage Amid Relief Effor...
Masahiro Hara
From Go Board to Global Use, How QR Codes Changed the World: IRAS Officer Ananth Rupanagudi Spotlights Masahiro Hara’s Vision
IRAS officer Ananth Rupanagudi shared a video on Masahiro Hara, the inventor of QR codes, highlighting...
IFS Susanta Nanda Video
A Mother’s Duty: Tigress Watches Over Cubs Splashing in Waterhole — Heartwarming Video Shared By Retd. IFS Officer Susanta Nanda
A tender wildlife video shared by Retd. IFS officer Susanta Nanda shows a tigress keeping watch over...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
Haryana gov resized
Haryana Govt Transfers 21 Officers: 19 IAS, 1 IRS, 1 HCS Get New Postings; Satpal Sharma Appointed DC Panchkula
Bihar cabinet
Bihar: Construction Begins on ₹29.31 Cr Khadi Mall cum Urban Haat in Darbhanga; 1,200 Jobs Expected
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
IPS Shikha Goel
IPS Mukesh Kumar Bhamoo
WhatsApp Image 2025-08-25 at 13.56
ADVERTISEMENT
ADVERTISEMENT