Delhi’s gas-based plants run below capacity as Iran war hits supply; demand surges rapidly

Delhi's gas-based plants run below capacity as Iran war hits supply; demand surges rapidlyThe city’s peak electricity demand crossed 7,000 MW for the first time in April, touching 7,078 MW on Monday afternoon, surpassing the previous record of 6,650 MW set a day earlier, as per State Load Dispatch Center (SLDC) data. The surge in demand has put pressure on local generation, particularly on gasbased plants that are struggling to operate efficiently.The worst affected is the Pragati-III power station, which has an installed capacity of 1,371 MW but is currently generating only about 270 MW, said a senior government official. Officials said the plant requires nearly 5.6 MMSCMD of natural gas to function at full capacity, but supply constraints have affected its output.Similarly, the Pragati-I power station, with a capacity of 330 MW, is producing just about 142 MW. The smaller gas turbine power station is generating nearly 37 MW against its 90 MW capacity.Noting that energy supply chains have been disrupted due to the conflict, officials said gas prices that once ranged between $7 and $12 per MMBtu have now surged to $18-24 per MMBtu, making power generation significantly more expensive.“The economics simply do not support full-scale generation at these prices,” said an official. “In such prices, it would be too costly to justify running plants at full capacity because that could lead to price hike.”Another official said SLDC, which manages electricity distribution in Delhi, has also been cautious in scheduling power from these plants. Since gas-based electricity is currently more expensive compared to other sources, SLDC prioritizes cheaper alternatives and only calls upon these plants during peak demand or emergencies.This comes at a critical time when Delhi’s electricity demand is rising sharply due to increasing temperatures and early summer conditions. The reliance on external power sources has grown. This is the earliest in the year that a demand as high as 7,000 MW has been recorded in the city. Power demand had first crossed 7,000 MW in July 2018, while in 2024 and 2025, the figure was reached in May. This year’s early spike reflects a pronounced shift driven by intense heat and rising cooling needs across households and commercial spaces.An official said it would not affect Delhi’s power supply much as only 15% of the total power purchase is sourced from own generation by Delhi govt power plants and 85% is purchased from central govt and other sources externally.“However, in extreme heat, we produce more using market rate or spot prices, which is costlier,” he said.

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