The capacity utilisation, or plant load factor (PLF), of gas-based power plants, with 23.64 gigawatts (GW) capacity under operation, fell in July 2024 after clocking multi-year highs during April to June.
Monsoon rains during July brought down the power demand to some extent which also reflected in the lower requirement for cooling.
According to the Central Electricity Authority (CEA) data, the PLF of gas-based power plants stood at 15.2 per cent in July 2024, compared to 27.1 per cent in June 2024 and 12.4 per cent in July 2023.
Record performance
The decline in capacity utilisation by such thermal power plants (TPPs) comes after a record breaking performance during April to June 2024.
During Q1 FY25, gas-based plants clocked a capacity utilisation, or plant load factor (PLF), of 25.8 per cent generating 13,338.23 million units (MU) on a provisional basis, which is the second highest after Q1 FY21.
The world’s fourth largest LNG importer consumed 97.01 million standard cubic meters per day (MSCMD) natural gas in Q1 FY25, up 53 per cent Y-o-Y. The consumption is the third highest
Besides, gas-based power plants clocked a PLF of 28.7 per cent generating 5,053.41 MU of electricity in May 2024, which is the third highest on record after may 2020 and June 2020.
Consequently, India’s natural gas consumption is also expected to rise in the current calendar year.
The International Energy Agency has revised upwards the growth rate in India’s gas demand to 8.5 per cent from 7 per cent Y-o-Y in 2024 calendar year. Similarly, the Gas Exporting Countries Forum (GCEF) predicts usage to grow at 6 per cent Y-o-Y.
Higher gas consumption for power generation is among the reasons fuelling the growth.
Demand-Supply scenario
During July 2024, the gas-based power plants consumed 19.65 million cubic meters per day (MSCMD) of natural gas and produced 2,674.24 million units (MU).
India’s cumulative electricity generation rose by 9 per cent Y-o-Y to 160.90 billion units (BU) in July this year.
While thermal power generation grew by 8 per cent Y-o-Y (111.41 BU), the growth in Nuclear power was higher at more than 25 per cent on an annual basis (4.80 BU). Power generation from renewable energy sources (RES), including small hydro power, rose by almost 20 per cent Y-o-Y to 25.97 BU.
In July this year, the country’s cumulative energy requirement stood at 150.21 BU against an availability of 149.85 BU. Against this, last year in July, the requirement stood at 140.62 BU against an availability of 140.42 BU.
Peak demand during July 2024 was 227.48 gigawatts (GW) against which the demand met was 226.63 GW. In the year-ago period, the peak demand stood at 209.04 GW and demand met of 208.95 GW.