ET View: Step up fuel supply for peaking power
Reports say that spot prices of power in the day ahead market on Indian Energy Exchange (IEX) have shot up. It suggests rising demand for power, which needs to be cautiously welcomed. It should boost overall growth. But we need to purposefully remove rigidities in power supply.
What’s required is a sound policy regime in power, so that producers can gainfully seek custom with competitive tariffs nationally. An efficient market would make perfect sense.
Spot power tariffs have reportedly shot up to Rs 16.49 per unit on Friday, after climbing to Rs 14.25/unit on Thursday at IEX, and which amounted to a nine-year high.
Power watchers says that the spike in rates have been caused by lower wind and hydro power output, along with persistent coal shortages at various thermal stations.
In the short term, enhanced fuel supply and improved supply logistics should boost generation. But in the medium term and beyond, we need to plan for higher load during the hours of peak demand. Hence the need to proactively step up natural gas usage in the nation’s commercial energy mix.
Natural gas as fuel can very efficiently provide peaking power.
What’s required is a sound policy regime in power, so that producers can gainfully seek custom with competitive tariffs nationally. An efficient market would make perfect sense.
Spot power tariffs have reportedly shot up to Rs 16.49 per unit on Friday, after climbing to Rs 14.25/unit on Thursday at IEX, and which amounted to a nine-year high.
Power watchers says that the spike in rates have been caused by lower wind and hydro power output, along with persistent coal shortages at various thermal stations.
In the short term, enhanced fuel supply and improved supply logistics should boost generation. But in the medium term and beyond, we need to plan for higher load during the hours of peak demand. Hence the need to proactively step up natural gas usage in the nation’s commercial energy mix.
Natural gas as fuel can very efficiently provide peaking power.