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India's Power Demand to Surge 13-27 GW Amid LPG Shortage, Hormuz Blockade

· · 2 min read

India anticipates a significant surge in power demand, estimated between 13 GW and 27 GW, as a West Asia crisis disrupts LPG imports via the Strait of Hormuz, prompting a shift to induction cooking. The Ministry of Power is deferring plant maintenance and planning new capacity additions to cope.

New Delhi – India is bracing for a substantial increase in its electricity demand, projected to rise by 13 to 27 gigawatts (GW), as a deepening West Asia crisis disrupts liquefied petroleum gas (LPG) supplies and forces a widespread shift towards induction cooking. The Strait of Hormuz, a critical maritime chokepoint through which India imports approximately 90 percent of its LPG, is at the heart of the supply disruptions.

Krushna Chandra Panigrahy, Director General of the Bureau of Energy Efficiency, indicated that this additional demand would manifest at the distribution level. While the overall impact on the nation's power grid remains limited thus far, the potential for a significant surge is prompting preemptive measures from authorities.

India's Energy Security Challenge

The transition to induction-based cooking is a direct response to the escalating LPG shortages, which have been exacerbated by the ongoing conflict in West Asia. Variations in regional usage patterns, influenced by climate, socioeconomic factors, and local cooking habits, contribute to the complexity of these demand projections.

Joint Secretary Sujata Sharma from the petroleum ministry underscored India's unwavering priority: securing energy to meet its vast domestic demand. She noted that crude oil purchases are evaluated based on technical and commercial feasibility for refiners, with India diversifying its energy procurement from sources including Russia, the United States, and Australia. Furthermore, the government is actively exploring options to expand its strategic petroleum reserves, a move aimed at bolstering national energy security against future shocks.

Meeting the Demand Surge

To mitigate the impact of this anticipated increase in India power demand surge, the Ministry of Power has already deferred maintenance for coal-based power plants with a combined capacity of 10 GW for three months. Looking ahead, India plans an aggressive capacity expansion, aiming to add over 22 GW between April and June. This includes 3.5 GW of thermal capacity, 10 GW of solar power, 2.5 GW of wind energy, 1.9 GW of battery energy storage, and 750 megawatts (MW) of hydropower, alongside other pump storage and hybrid projects.

Joint Secretary Piyush Singh confirmed that gas-based power plants have recently been granted permission to import their own liquefied natural gas (LNG), enhancing flexibility and supply security. Singh also projected India's peak power demand to reach 271 GW this year, highlighting the continuous efforts focused on capacity expansion and ensuring a stable coal supply to meet the nation's growing energy needs.

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