The State of Gujarat has been witnessing a substantial surge in power demand, growing at a compound annual growth rate (CAGR) of more than 6 per cent over the past five years. From a peak demand of 24,544 MW in FY 2023-24, the demand is projected to reach approximately 36,000 MW by FY 2031-32, as per the 20th Electric Power Survey (EPS) Report by the Central Electricity Authority (CEA).
Under the leadership of Chief Minister Bhupendrabhai Patel, the Energy & Petrochemical Department (EPD), headed by Kanubhai Desai, along with the Industries & Mines Department (IMD) of Gujarat, have outlined a comprehensive framework to secure the state’s energy future.
In an event on 25 June 2024, the Government of Gujarat, represented by the Minister of Finance, Energy & Petrochemical Kanubhai Desai, signed a Memorandum of Understanding (MOU) between Gujarat Urja Vikas Nigam (GUVNL) and Gujarat Mineral Development Corporation (GMDC). This collaboration aims to address the long-term energy security of the state through the development of coal-based and lignite-based power stations.
Strategic Partnership for Sustainable Energy
This strategic partnership underscores a collective dedication to bolster energy security through the sustainable utilisation of coal and lignite. Commenting on this development, Desai stated, “The signing of this MOU marks a historic milestone as we embark on a journey to secure the energy future of Vibrant Gujarat. This landmark agreement between GUVNL and GMDC is a testament to our shared dedication to energy excellence. Through collective wisdom and strategic partnership, we are committed to providing reliable and sustainable power for all, ensuring that our state continues to thrive and grow. A self-reliant and Vibrant Gujarat will also be a force multiplier for the country’s economy. Energy security is at the core of our efforts, ensuring positive results and significant investments through the mining and electricity value chain."
Commitment to Renewable Energy and Carbon Footprint Reduction
Both utilities are acutely aware of the need to reduce carbon footprints and are committed to robust measures to develop renewable energy projects. The current initiative is aligned to meet the residual surge in power demand for load balancing and meeting the late evening peak requirements.
GMDC has been proactive in developing lignite mines in Gujarat, allocated by the Government of India. Moreover, the Government of India has allocated two large commercial mines at Baitarani-West (Angul District) and Burapahar (Sundargarh District) in Odisha, with a cumulative mineable coal reserve of 660 million metric tonnes (geological reserve – 1700 million metric tonnes). Together, these mines can support a thermal capacity of approximately 4400 MW. GMDC is also in the process of operationalising its lignite mines in Gujarat, which can support an additional 1250 MW of lignite-based capacity, ensuring a continuous 24x7 power supply for the state’s consumers in a more reliable and competitive manner.
