High fuel prices to keep gas-based power projects in a bind

Unavailability of natural gas, steep prices of imported LNG hurting operations of projects

The unavailability of natural gas and steep prices of imported LNG are hurting the operations of gas-based power projects in the country.

Gas-based power generation capacity in the country at present is 25,300 Mw — the figure is 7.5% of the total installed power capacity. Data by the Central Electricity Authority (CEA) shows over 70% of privately operated gas plant potential is underutilised due to unavailability of natural gas required to fuel them. For the ones operated by Centre or state, the under-utilisation is lower at 38-40%. In 2016-17, the gas fired projects operated at a mere 22.51% plant load factor