Yelahanka Power Plant Revived Amid Drought-Like Conditions in Karnataka

The Yelahanka gas-based power plant in Karnataka has resumed operations after a four-month shutdown due to disrupted natural gas supplies. The plant, which was commissioned in September 2024, was shut down on March 10 when GAIL India suspended fuel supply as part of Centre's priority for domestic consumers during the West Asia conflict.

The Karnataka Power Corporation Limited's (KPCL) 370-MW Yelahanka Combined Cycle Power Plant is the state's first gas-based power station. It was converted from diesel-powered generating sets to operate on natural gas under an agreement with GAIL India, which supplies around 60% of the plant's gas requirement at a mutually agreed price and procures the remaining 40% at spot market rates linked to global gas prices.

The govt has revived the Yelahanka plant to support the state's power grid amid severe rainfall deficit that has crippled hydroelectric generation and pushed electricity demand sharply higher in Bengaluru. KPCL managing director Rajendra Cholan said reviving the Yelahanka plant is essential as hydel generation has dropped drastically this year, from nearly 15,000 million units (MU) in June and July last year to around 6,000-7,000 MU currently - a decline of almost 50%.

The plant is expected to generate around 2,600-2,700 MU annually at an 85% plant load factor. The cost of generation depends on the Henry Hub natural gas price index, which is currently below 4, making it viable for meeting weekday peak demand as Bescom purchases this power at around Rs 8 per unit.