India is exploring the increased use of its under-utilized gas-fired power plants to ensure a stable power supply during critical peak evening hours. This move is crucial as the nation rapidly expands its renewable energy capacity, requiring flexible generation to maintain grid stability. India aims to preserve its approximately 20 gigawatts (GW) of existing gas-based capacity, considering these plants are cleaner than coal and essential for offsetting the intermittent nature of wind and solar power. Historically, gas-fired generation is maximized only during peak summer months due to its higher relative cost.
However, the current exploration seeks to optimize this operational strategy. Power Secretary Pankaj Agarwal stated that for the past three years, a study has been underway to assess the viability of running gas plants for eight hours in the evening and keeping them shut during the rest of the day. Although no specific timeline for the study’s conclusion was provided, Agarwal has urged state utilities and plant operators to actively explore this option. This proactive approach aims to leverage gas-based generation for vital grid stabilization, ensuring reliable electricity delivery across the country.
With renewable energy’s share now exceeding 50% of India’s total installed capacity, there’s a growing recognition of potential power supply challenges during periods of low wind and solar output, similar to issues observed in Europe. The government previously adjusted the grid-connected gas capacity from 25 GW to 20 GW, as some plants were deemed unfit or uneconomical after years of idling due to high gas prices. As the world’s fourth-largest buyer of liquefied natural gas (LNG), India plans to significantly raise the share of gas in its energy mix from about 6.2% to 15% by 2030. Recent Asian spot LNG prices rose to a nine-week high of $11.35 per million British thermal units due to increased winter demand.