The government of India has mandated that imported coal-based power plants must operate at full capacity and sell the surplus power to the exchanges. This comes after a request by several states to ensure adequate power supply. The Power Ministry has invoked Section 11 of the Electricity Act, like last year, to meet the expected rise in power demand.

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The order implies that at least 15 imported coal-based plants will have to operate at their full capacity. The order will remain valid for power generation and supply between March 16 to June 15.

The list of the 15 imported coal-based plants goes as:

Coastal Gujarat Power Ltd.

Adani Power Mundra Ltd. (TPS-I & II)

Adani Power Mundra Ltd. (TPS-III)

Essar Power Gujarat Ltd.

JSW Ratnagiri Ltd.

Tata Trombay Ltd.

GSECL Sikka Ltd.

ILSFS Tamil Nadu Power Co. Ltd.

Muthiara-Coastal Energen

Udupi Power

Simapuri Energy Ltd.

Meenakshi Energy Ltd.

JSW Tarangallu - 1 & 2

SEPC Power Pvt. Ltd.

OPG Generation (P) Ltd.

The move comes as India is expected to face a peak demand of 229 GW in April 2023. To meet this demand, at least 193 GW would be required from Thermal generating stations. The order further mentions that this year saw India's electricity demand touch an all-time high of 215 GW.

The government has fixed the variable cost to be determined by a committee. The decision will ensure that the electricity market remains stable and accessible to all.

Last week, the Central Electricity Regulatory Commission (CERC) approved a new market segment for expensive power on exchanges. The move is expected to bring more flexibility to the market and ensure that expensive power is available when needed.

The government's decision is expected to have a positive impact on the power sector in India. The decision to mandate imported coal-based power plants to operate and sell to power exchanges will ensure that there is enough electricity to meet the increasing demand.

The move is also expected to help the government reduce the cost of electricity, which has been a major concern for consumers in the country. The government has been working to reduce the cost of electricity by promoting renewable energy sources and by increasing the efficiency of existing power plants.

The government's continued efforts to promote renewable energy and increase the efficiency of power plants will also be critical in meeting the country's growing demand for electricity.

Also read: Power ministry tells utilities to import 6% of their coal for nine months

(Edited by : Pradeep John)

First Published:Feb 20, 2023 11:50 PM IST