India Battles Summer Heatwave with Record Power Demand and Strategic Measures

The scorching heat wave gripping Northern India since mid-May 2024 has pushed power demand to unprecedented levels. The region saw its highest-ever peak demand of 89 GW on June 17th, 2024. Despite these challenges, the government successfully met this demand by strategically importing 25-30% of the region’s power needs from neighbouring states.

Utilities have also been placed on high alert to minimise equipment outages and ensure continued power availability. The India Meteorological Department (IMD) forecasts some relief, with heatwave conditions in North-West India expected to subside from June 20th onwards.

Looking at the national picture, the Ministry of Power has proactively implemented a comprehensive strategy to ensure adequate power supply throughout the country during this peak summer season. This strategy tackles various aspects of power generation and distribution:

• Optimising Coal-Based Power Plants: Directions have been issued under the Electricity Act, 2003 to keep imported coal-based (ICB) plants operational during this high-demand period. Additionally, maintenance schedules for existing plants have been minimised to maximise generation capacity. Efforts are also underway to revive units currently under long-term outage.
• Enhancing Plant Readiness: All power generating companies (GENCOs) have been advised to maintain their plants optimally to ensure full capacity availability. This includes ensuring proper equipment functioning and taking necessary steps for smooth operation of various power generation sources.
• Coal Stock Management: Adequate coal stockpiles are being maintained at coal-fired thermal power stations to prevent disruptions due to fuel shortages.
• Strategic Use of Hydroelectricity: Hydroelectric power stations have been instructed to conserve water during peak sunlight hours and maximise power generation during non-solar hours. This approach helps maintain a steady power supply throughout the day.
• Boosting Gas-Based Power Generation: Gas-based power plants are playing a crucial role by providing grid support under the Electricity Act. Furthermore, authorities have secured an additional 860 MW of gas-based capacity through competitive bidding specifically for the summer season. Additionally, approximately 5000 MW of existing NTPC gas-based capacity has been readied for immediate deployment based on system requirements.
• Leveraging Market Mechanisms: Unutilized or surplus power available with generating stations is being offered in the electricity market as per regulations. This allows states facing shortages to access power from other regions with available capacity.
• Inter-State Power Cooperation: States are encouraged to utilise the PUShP portal to establish power-sharing agreements with neighbouring states that have surplus capacity. This collaborative approach helps ensure wider power availability across the country.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.