Gas-Based Power Generation in India
GS-3 Mains
Short Notes or Revision Notes
Question : “Examine the role of government policies and initiatives in promoting the development of infrastructure for gas transportation and distribution in India.
Context:
- The Indian government directed all gas-based power plants to operate at full capacity from May 1 to June 30, 2024, to meet the anticipated rise in electricity demand due to an early heatwave.
India’s Gas-Based Power Sector
- Central Electricity Authority monitors 62 gas-based power stations with a total capacity of 23,845 MW.
- Natural gas demand is expected to rise by 6% in 2024 (IEA).
- India is the 4th largest importer of liquefied natural gas (LNG).
Significance of Gas-Based Power
- Advantages:
- Lower emissions compared to coal.
- Quicker ramp-up times for increased power generation.
- Relatively small footprint compared to other sources.
- Challenges:
- Limited domestic gas reserves, necessitating imports.
- Inadequate infrastructure for gas transportation and distribution (pipelines, terminals).
- Competition with other fuels (coal, renewables) based on pricing.
- Environmental concerns related to methane leakage and emissions.
Need for Increased Gas-Based Power
- Cleaner energy source for improved air quality, especially in urban areas.
- Operational flexibility and efficiency compared to coal plants.
- Reduced dependence on coal for energy security and resilience.
- Faster deployment for meeting short-term demand spikes.
Government Initiatives
- Infrastructure Development:
- 23,391 km operational gas pipeline network (Feb 2024).
- Target to increase pipeline coverage by 54% to 34,500 km by 2024-25.
- Pradhan Mantri Urja Ganga (PMUG) project for eastern India gas pipeline network.
- City Gas Distribution (CGD) network expansion for wider piped natural gas (PNG) access.
- Natural Gas Marketing Reforms:
- Enhanced transparency and competition to attract investment.
- Gas Price Rationalization:
- New Domestic Gas Pricing Guidelines (2014) and HELP for producer incentives.
- Natural Gas Infrastructure Development Fund (NGIDF):
- Financial support for gas infrastructure development.
- Promotion of LNG Imports and Terminals:
- Diversifying gas supply sources and improving energy security.