India has 20 gigawatts (GW) of gas-based power plants as of July 2026.
| Photo Credit:
AMIT DAVE
India’s gas-based power plants helped provide grid stability during the peak electricity demand season in April and May 2026 as severe heat waves pushed up demand for cooling during evening and night hours.
India has 20 gigawatts (GW) of gas-based power plants as of July 2026.
The International Gas Union (IGU) noted that India provides a recent example of how heat waves can translate into higher gas demand. In May 2026, peak power demand reached a record 271 GW (270.82 GW) as severe heat waves lifted cooling needs across the country.
During April and May, natural gas-based power plants increased natural gas purchases on the Indian Gas Exchange (IGX) by around 340 per cent y-o-y, reaching 124.3 million cubic meters (mcm), as power demand remained high due to cooling requirements, it pointed out.
“While solar helped meet daytime demand, natural gas-based plants provided flexible supply and supported grid stability during high demand evening and night hours when solar generation was unavailable. This shows how natural gas can provide short term flexibility when extreme heat pushes electricity demand above normal levels,” the industry body emphasised.
It highlighted that cooling needs during periods of extreme heat are increasing the need for reliable and dispatchable power, particularly where grid capacity, renewable output or storage availability are constrained.
In this context, natural gas can support system flexibility by providing capacity during periods of high demand, supply disruption or lower renewable generation, IGU noted.
Electricity demand growth is being driven by several factors including cooling, industrial activity, agriculture and broader economic growth. However, hotter seasonal conditions can add further pressures by increasing cooling needs.
For instance, in India, the monthly peak demand rose above historical ranges during the 2026 hot season, with the country staying above the 2020-2024 range in the first five months of the year. It reported daytime peak power demand of a record 270 GW during May and July, it added.
The industry body emphasized that higher maximum daily temperatures go hand in hand with rising air-conditioning ownership, supported by income growth, urbanisation and improving living standards.
“Peak demand during cooling seasons has become more sensitive to temperature as air-conditioner stock continues to grow. In India, each 1°C increase in outdoor temperature was associated with more than 7 GW of additional peak demand in 2024, up from around 4 GW in 2019,” IGU said.
This points to a wider risk for fast growing Asian markets, where expanding cooling access can turn short periods of extreme heat into system wide demand spikes, it said.
These developments point to a broader planning challenge. As air-conditioning use rises, higher temperatures can widen the gap between average electricity demand and peak demand. This shows that heatwave-driven demand growth is not only a short-term operational issue, but also a long-term capacity planning challenge, the industry body emphasised.
“Looking ahead, the risk could become more pronounced in 2026 if El Niño conditions develop as expected,” the IGU said.
Published on August 30, 2026
