Iran War Squeezes India’s Gas Power Supply as Demand Hits Record

wb{kzumrqqg)adt5w31][kgt_media_dl_1.png Ministry of Power, India Article content (Bloomberg) — India’s gas power generation has plunged to the lowest level in at least six years, with the Iran war hitting fuel shipments, straining electricity supplies at a time when a scorching summer is pushing demand to record highs. Article content Peak electricity consumption surged to an unprecedented 270.8 gigawatts last week, rising for four straight days, as people cranked up air conditioners and other cooling appliances amid soaring temperatures. While daytime consumption was largely met with the help of solar generation, supplies struggled to keep pace with the surge in the night, also a record. Low output from gas-fired plants, hamstrung by fuel shortages caused by the war, worsened the pressure on the grid. Article content Article content Article content Gas-fired generators in India produced about 3.6 billion kilowatt hours of electricity between April and May 21 this year, the lowest for the period in at least six years, data from the power ministry showed. The output was about two-thirds of the production during the same period last year and just about half of that in 2024. Article content Article content The Strait of Hormuz has remained virtually shut with Iran and US enforcing blockades on a waterway that normally handles about a fifth of global LNG supply. India imported more than half of its LNG from Qatar and the UAE, but those shipments have almost dried in the last few months. Article content While these stations bought the imported fuel from the Indian Gas Exchange to meet a part of the evening demand surge, generation was still below par. As a result, power supply fell short almost every night when demand peaked. Article content The deficit, along with local grid breakdowns, have caused blackouts across the country, from the capital New Delhi to the most populated state of Uttar Pradesh in the north, as well as the heavily industrialized Tamil Nadu in the south. After fuel shortages and a series of energy price increases, the outages during a blistering summer underscore the rising toll from the conflict on households and businesses. Article content Gas power plants account for a tiny share of India’s total electricity output, but are crucial for bridging the supply gap during hot summer nights after solar generation switches off, and blackouts can invite widespread public outcries. Article content Share this article in your social network…