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Power generation in Karnataka may face difficulties after the Central Government decided to prioritise natural gas supply to certain sectors due to a shortage caused by the ongoing conflict in West Asia involving the US-Israel alliance and Iran. Sources in the State Energy Department said this decision could affect
electricity production in the state.
Possible Electricity Crisis
The Centre recently issued a notification under the Natural Gas (Supply Regulation) Order, 2026. The order sets priority levels for different sectors in receiving natural gas, as India is currently facing supply constraints due to the geopolitical tensions in West Asia. Under the Centre's notification, the highest priority for natural gas allocation has been given to domestic piped natural gas (PNG), LPG production, compressed natural gas (CNG) used in transport, and essential pipeline operations. These sectors will receive 100% of their average gas consumption from the last six months, while power generation has been placed at the lowest level. Fertiliser plants fall under the second priority category and will receive about 70% of their usual gas supply. Industrial consumers are placed in the third category, while commercial consumers are placed in the fourth category.
Shortage of Gas Supply to the Yehalanka Plant
Officials said this decision has already affected Karnataka's only gas-based power plant at Yelahanka in Bengaluru. The Yelahanka plant, operated by the Karnataka Power Corporation Limited (KPCL), has a capacity of 370 MW and mainly supplies electricity to Bengaluru. After the notification came into effect, gas supply to the Yelahanka plant was stopped completely from 6 a.m. on March 12. Since power generation is placed in the lowest priority, supply to such plants may remain restricted until the gas shortage situation improves. Officials warned that stopping the gas supply could impact power production at the facility, and there could be minor disruptions unless alternative sources fully cover the shortfall.
The plant has been running continuously since December 2025 to help meet the state's electricity demand. However, the shortage of natural gas due to West Asia tension could reduce its generation capacity.
Karnataka's Electricity Consumption
Karnataka currently requires around 355 million units of electricity every day. The state meets this demand through a mix of thermal power plants, hydropower stations, renewable energy sources such as solar and wind, and electricity received from the Central grid.
Electricity Supply During Peak Demand Period
Officials said the government is using all available sources to maintain an uninterrupted power supply, especially during peak demand periods. Karnataka is also purchasing electricity through power exchange arrangements with states such as Punjab, Uttar Pradesh, and Haryana to maintain grid stability.
Fertiliser plants fall under the second priority category and will receive about 70% of their usual gas supply. Industrial consumers are placed in the third category, while commercial consumers are placed in the fourth category.
