In February this year, when the seasonal demand for electricity is usually not very high, the power shortage during the peak demand period averaged 2.5% — starkly down from 13.8% in August 2014.
The requirement for power can fall or rise dramatically, underscoring the need to have power plants that can be pressed specifically into service in times of high deficit. But, even after a year of the ministry of power coming out with a model bidding document for peaking power, there is hardly any power plant being planned to meet peak demand or power procurement plan is designed to meet the blips. “All over the world to maintain the grid, you need to have certain base load, which comes from coal generation, while some plants are needed to meet the peaking load, which comes from hydro and gas. The challenge in our country is that every power plant is built on basis of base load because we do not have enough capacity,” said Rajiv Mishra, managing director, CLP India.