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To help gas-based power plants operating at low capacity in improving their power generation, the Petroleum Ministry has introduced flexibility in gas utilisation by clubbing/diversion of allocated gas between two or more power plants belonging to the same owner.
An official statement said: “Considering the fact that many power plants in the country are operating at low Plant Load Factor (PLF) due to acute shortage in availability of domestic gas leading to inefficient production of electricity, the Ministry has notified guidelines for clubbing/diversion of allocated gas between two or more power plants of the same entity (the ownership structure of the power plants involved in clubbing/diversion must be identical) so as to improve the PLF and corresponding increase in total generation of electricity.”
According to the Central Electricity Authority, the total gas-based capacity in the country is about 18,903 MW. Gas available to the power sector is only 55 mmscmd which can cater to about 10,000 MW capacity. NTPC, the biggest player in the sector, has 3,600 MW gas-based capacity and 1,600 MW capacity at Ratnagiri plant.
The Petroleum Ministry has said that the clubbing/diversion, in all spells, should not be for a period of more than a year in total. Besides, this should lead to higher production of electricity compared to pre-clubbing arrangement. The cost of the gas, so diverted, would be in accordance with the price based on the source of the diverted gas so that there is no financial burden on the end consumers, the statement said.
The entity seeking clubbing/diversion would bear any additional financial liability arising from the existing and future Gas Sale Agreement (GSA)/Gas Transport Agreement (GTA) and any other swapping transaction resulting there from, it said adding that the end-use of the diverted gas would remain the same — supply of power to state discom.
“The power plants would, therefore, have to obtain no objection from the power distribution company concerned to which they are supplying electricity (pre-clubbing/diversion) and the Ministry of Power shall operationalise the arrangement,” the statement added.
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