REGULATORY · MARKET STRUCTURE · INDIA
India readies alternative generation capacity
Change
India is preparing alternative generation capacity to meet peak electricity demand amid reduced gas-based generation availability.
Why it matters
India has about 20 GW of gas-based power capacity, of which roughly 8–10 GW is currently functional. Alternative generation capacity is being prepared to cover peak demand while some gas-fired units remain offline amid the West Asia crisis. The government is pursuing additional capacity additions during the year and a restart of Tata Power's 4,000 MW Mundra plant under Section 11 of the Electricity Act, 2003. The Mundra plant has been offline since June 2025.
Implications
- · Reduced gas-fired availability tightens dispatch options for system operators during peak periods.
- · Deployment of alternative and coal-fired units increases reliance on dispatchable thermal capacity for peak coverage.
- · A restart of the 4,000 MW Mundra plant increases available coal-fired capacity on the grid.
Who is affected
- · Grid operators
- · Electricity system planners
- · Power generators
- · Dispatch centers
Source
Topics
Law & Public Safety Regulatory Actions Energy & Power Grid & Utilities