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Power Ministry Directs Gas-Based Plants to Ensure Summer Readiness with 14-Day Scheduling Notice

May 21, 2025

Amid soaring power demand during the summer, the Power Ministry has invoked Section 11 of the Electricity Act, 2003, directing gas-based power stations (GBSS) to prepare for electricity generation based on a 14-day advance notice. Grid India will notify the expected number of days the plants must operate weekly, helping gencos secure natural gas supply and plan generation schedules accordingly.

The move aims to maximize power availability during peak months, with India’s electricity demand driven by economic growth and intensified by extreme temperatures, as forecasted by the India Meteorological Department. GBSS notified by Grid India must dispatch at least 50?pacity round-the-clock during high-demand days.

Gas plants will prioritize their Power Purchase Agreement (PPA) obligations. If power goes unscheduled by PPA holders, it can be offered to other discoms or sold in the open market. Additionally, surplus capacity may be dispatched by Grid India for grid support.

The Ministry has also issued tariff-related guidelines. GBSS with PPAs must offer electricity at Energy Charge Rates (ECR) approved by regulators. Non-PPA holders will use benchmark ECRs set by a Central Electricity Authority-led committee, which will review and adjust rates biweekly based on gas price fluctuations. Power sold in exchanges or for grid support must not exceed 120% of ECR plus transmission charges.

This regulatory intervention aims to strengthen India’s power resilience amid rising peak demand—projected to hit 277 GW in FY26—and ensure efficient utilization of gas-based plants, which can quickly respond to sudden surges in demand.