Generation for Peak Demand
Generation for Peak Demand
Capacities for meeting peak demand for power are the need of the hour. This chapter outlines perspectives from the supply side as well as the demand side for peaking power and also explains the pre-requisites for making investments in peaking power plants feasible. The Electricity Act, 2003 and the Tariff Policy have provisions for differential tariff based on total consumption for a specific period and introduction of differential rates for fixed charges for peak and off-peak generation for better management of load. The chapter presents the current scenario in this respect and also the regulatory response so far. The chapter analyses the various issues which are seen as a constraint to the development of peaking power capacity in the country. Required policy and regulatory interventions have been suggested to encourage setting up of peaking power plants which are urgently required for the power sector in India.
Keywords: India, power sector, peaking power plant, Electricity Act, Tariff Policy, regulation, off-peak generation
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