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
Union Budget 2026 27
Union Budget 2026-27: ₹10,000 Cr Biopharma SHAKTI, Semiconductor & ISM 2.0, Textile Mega Parks to Boost 7 Strategic Sectors
Union Budget 2026
Union Budget 2026-27: 3 Kartavyas to Boost India’s Growth, Skills & Inclusive Development
J&K IAS Officers Reshuffle
Karnataka Promotee IAS Officers Hesitant to Attend Mandatory Mussoorie ITP, 25 Yet to Apply for Permission
PMGSY Bihar rural road connectivity
Bihar Govt Opens IAS Doors for Non-Administrative Officers, Recommends 2 for Induction
IPS-Sushil-Agrawal (1)
Who Is IPS Sushil Agrawal? IIT Delhi Graduate and Gujarat Cadre Officer Who Solved the 240 Gold Coins Case
Rice
Fine Rice Varieties, Crop Diversification in Focus as Centre Backs Chhattisgarh Agriculture
Uttar Pradesh yogi
6 IAS Officers Transferred in Uttar Pradesh to Boost Administrative Efficiency, Nagendra Pratap Appointed Agra Divisional Commissioner
GAIL PSU
GAIL MNJPL Pipeline Update: Mumbai-Nagpur Section Operational, Full Gas Supply by February 2026
ADVERTISEMENT
ADVERTISEMENT
Videos
Mugdha Sinha
A Bottle-Painter, A Poetess, An Author, Avid Reader, Champion Player and A Successful IAS Officer – Mugdha Sinha Has Aced It All
WhatsApp Image 2026-01-26 at 8.12
Hemming ITDC To Provide Ultimate Travel, Tourism & Hospitality Experience | IAS Mugdha Sinha Video Interview
Desh Deepak Verma IAS Video Interview
The Life & Times of an UPSC Aspirant in Allahabad
ADVERTISEMENT
UPSC Stories
IAS Avdhija Gupta UPSC
She Cried, She Learned, She Returned: The Unbreakable UPSC Journey of IAS Avdhija Gupta
From three consecutive Prelims failures to securing AIR 43, IAS Avdhija Gupta’s UPSC CSE-2024 journey...
UPSC Logo Explained
Why the UPSC Centenary Logo Matters: A Visual Guide to 100 Years of Civil Services
The UPSC centenary logo marks 100 years of India’s civil services. Decode its symbols and trace the journey...
Bhilai Steel Plant Diploma Engineer to CGPSC 2024 Deputy Collector – Yashwant Dewangan
Lost Father at 17, Worked Full-Time: Bhilai Steel Plant Diploma Engineer to CGPSC 2024 Deputy Collector – Yashwant Dewangan
Yashwant Kumar Dewangan, a BSP diploma engineer from Korba, overcame personal and professional challenges...
Social Media
One-Horned Rhino Calf
Watch: First One-Horned Rhino Calf of 2026 Takes Birth at Jaldapara National Park, IFS Officer Shares Rare Footage
A newborn one-horned rhinoceros calf was spotted at Jaldapara National Park on January 1, 2026. IFS officer...
venomous banded krait
Rare Night Encounter: IFS Officer Spots Highly Venomous Banded Krait During Forest Patrol, Internet Amazed
An IFS officer’s night patrol video of a highly venomous banded krait has gone viral, highlighting India’s...
elephant rescue Karnataka
Heroic Karnataka Elephant Rescue: How a 28-Hour “Impossible Mission” Became a Triumph of Wildlife Care, IFS Parveen Kaswan Shares Video
A trapped elephant was rescued after 28 hours in Karnataka through a massive, expertly coordinated Forest...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
Union Budget 2026 27
Union Budget 2026-27: ₹10,000 Cr Biopharma SHAKTI, Semiconductor & ISM 2.0, Textile Mega Parks to Boost 7 Strategic Sectors
Union Budget 2026
Union Budget 2026-27: 3 Kartavyas to Boost India’s Growth, Skills & Inclusive Development
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
Mugdha Sinha
WhatsApp Image 2026-01-26 at 8.12
Desh Deepak Verma IAS Video Interview
ADVERTISEMENT
ADVERTISEMENT