Why Grid India is turning to more gas-based power this monsoon

📌 Summary:

• The Grid Controller of India (Grid India) has advised gas-based power stations to plan fuel procurement for an extra 7-8 days of gas-fired generation in June, amid forecasts of below-normal monsoon rainfall (June-September); this is over and above 2.6 GW already available from isolated field stations.

• Basis of the assessment: projected demand, planned/forced unit outages, hydro and renewable generation profiles, and IMD weather inputs; Grid India cited historical data, upcoming capacity, planned outages and renewable variability.

• Why gas matters: though gas is a small share of the generation mix, it plays a crucial rebalancing role during evening peak hours when solar output drops; about 10 GW of gas capacity is typically relied on in peak summer.

• Twin pressures: the West Asia conflict has clouded fuel availability (only ~5 GW of gas capacity currently available, with priority allocation during shortages); below-normal rain has pushed hydro stations to conserve reservoir water (dual use — irrigation and power), constraining flexible peak generation.

• Market shift: power-sector entities bought 13,92,500 MMBtu of natural gas on the Indian Gas Exchange (IGX) between June 1-23 (nil in June 2025); April 1-May 31 spot purchases of 45,07,850 MMBtu were 340.4% higher year-on-year.

• Prices: average spot gas rose to Rs 1,606/MMBtu in April (up 43.5% y-o-y) and further to Rs 1,857/MMBtu in May, despite which buying rose due to constrained long-term import supplies.

🎯 UPSC Relevance: GS3 — energy security, power-sector infrastructure and grid balancing; impact of monsoon variability and geopolitical conflict on fuel supply and the renewable-fossil mix.

📝 Prelims Facts:

• Grid Controller of India (Grid India) manages national grid operations and resource adequacy.

• Indian Gas Exchange (IGX) is India's leading natural gas trading platform/bourse.

• Gas-based capacity (~10 GW in peak summer) provides evening peak balancing when solar output falls.

🔑 Key Term: Grid balancing — matching electricity supply with demand in real time, often using flexible sources (gas, hydro) to fill gaps when variable renewables like solar drop off.