India's peak power demand may hit 270 GW this summer: Minister for Power ML Khattar

Coal stocks at thermal power plants currently is at 51 million tons, which is enough to last more than 21 days, an ideal situation.

India is anticipating a record peak power demand of 270 gigawatts (GW) this summer, Union minister for power Manohar Lal Khattar said on February 21, adding that the government is fully prepared to meet the projected demand.

“This year, we have enough coal stocks at thermal power plants and the ministry is confident on meeting a peak demand of up to 270 GW this summer,” he said in an interaction with reporters in Delhi.

Central Electricity Authority (CEA) chairperson Ghanshyam Prasad said last year (2024), the government had anticipated the demand to hit 256 GW, but in reality the peak demand was lower at 250 GW. On its part, the Ministry of Coal will supply at least 906 million tonnes (MT) of coal to energise India's thermal power plants for the country to meet the peak demand.

Coal-fired power is going to do the major heavy lifting in terms of meeting the peak power demand this year as well. “The energy mix to meet the projected demand this summer is going to remain the same with the share of renewables increasing marginally by 2-3 percent. Thermal, last year, contributed 74 percent to meet the peak demand of 250 GW. This year too we expect the contribution of thermal power in the range of 70-74 percent. The contribution of hydropower is going to remain the same ranging from 7-11 percent,” Prasad told Moneycontrol.

Talking about the government’s preparedness, Secretary, Ministry of Power, Pankaj Agarwal said the coal stocks at thermal power plants (TPPs) are enough. “I would say the situation in terms of coal stocks at TPPs has never been as good as this year. We are appreciative of the Ministry of Coal as well as the Ministry of Railways for supplying adequate stocks despite rail route blocks and diversions due to the ongoing Mahakumbh,” he said.

Coal stocks at thermal power plants currently is at 51 million tons, which is enough to last more than 21 days, an ideal situation. When asked about imposing Section 11 of the Electricity Act, 2003 for imported coal-based and gas-based power plants to mandatorily run on full capacity during the crunch period, he said they would be imposed only if the situation demands. “As of now we have not ordered it. But if there is any crunch projected in meeting the peak demand, we would impose if the situation demands,” Agarwal said.

Section 11 of the Electricity Act, 2003, states that under extraordinary circumstances, the government can ask power generating companies to operate and maintain output in accordance with directions given. The section states that an appropriate commission may consider offsetting the adverse financial impact of the directions on any generating company in such manner as it considers appropriate.

Agarwal also stated that gas-based power plants will operate and the government has already issued a tender for procurement of 1800 MW of such power during the summer.