India is seeking bids to supply gas-fired power to address expected periods of unusually high electricity consumption in October and November.
Domestic gas plant operators are likely to bid for the tender, potentially pushing them to tap the spot liquefied natural gas (LNG) market at a time of tepid Asian demand.
India relies on coal to generate nearly three quarters of its electricity, and power generated from coal is typically much cheaper than when generated by gas-fired plants. Over half of the country's roughly 25 gigawatts (GW) of gas-fired capacity is non-operational because of relatively high LNG prices.
However, the worst power shortages in 16 months due to an unexpected surge in power demand due to factors including higher than usual temperatures, and a sharp plunge in hydroelectricity output, have forced the world's fifth largest economy to turn to gas-fired power.
"The operation of gas-based plants is envisaged tentatively for 20 days during the crunch period, extendable by another five days based on requirement," a tender issued by a unit of state-run NTPC Ltd said.
India is seeking bids to supply 4,000 megawatts (MW) of electricity from gas-fired power plants to address high demand in October and November, according to the tender.
