New Delhi, In a recent interview with Moneycontrol, Union Minister for Power and New and Renewable Energy RK Singh disclosed that the Ministry of Power has shelved a 2022-23 proposal to revive gas-based power plants in India. Singh cited non-competitive power tariffs as the primary reason for putting the plan on hold.
India, with an ambitious target of achieving 500GW of installed renewable energy capacity by 2030, has decided not to prioritize an increase in gas-based power generation. Singh emphasized that the current power generation cost through gas-based stations is significantly higher, around Rs 13-14 per unit, compared to Rs 2.4 per unit from renewable sources and approximately Rs 4 from thermal power.
Despite this decision, Singh clarified that the government will continue the 2023 model of utilizing some gas-based power for peaking and balancing requirements. The need for expensive gas-based power is questioned when more cost-effective alternatives are available.
Earlier in December, Singh announced the government’s approval to operationalize around 5000 MW of NTPC gas-based capacity to meet peak demand during the summer of 2023. An additional 4,000 MW of power from gas-based capacity, excluding NTPC plants, was also tendered to address the same demand.
The Central Electricity Authority (CEA) monitors 62 gas-based power stations with a total capacity of 23,845 MW, facing challenges due to higher costs and limited gas availability. Between April 2022 and January 2023, only 16.14 MMSCMD of gas was available, contributing to the stations’ inactivity.
India’s energy strategy aims to achieve a 500GW installed renewable energy capacity by 2030, while also planning to increase coal-fired capacity by 80GW until 2030. This aligns with projections of India’s peak power demand, expected to reach 335GW in 2029-30.
