Why in the News? 

• The Central government has issued directives under Section 11 of the Electricity Act, of 2003 to all gas-based generating stations to ensure Maximum Power Generation.
  • This section empowers the Central/state government to specify the operation of generating stations in extraordinary circumstances.

Why India Needs Gas-based Plants?

• Electricity Demand in India: India faces a surge in electricity demand, especially during the upcoming summer season. The government has instructed gas-based power plants to commence operations to address this demand surge.
• Optimizing Power Availability: The directive aims to optimize power availability from gas-based generating stations during the anticipated high-demand period, similar to measures taken for imported-coal-based power plants.

• Ideal Transitioning Fuel: Gas-based power plants can be an ideal transition fuel for the shift from coal-based generation to renewable energy in the Indian power sector. They can provide the necessary flexibility and reliability to the grid as the share of renewable energy increases.
• Targets: The Indian government has set a target of increasing the share of non-fossil fuel, especially renewables, in power generation to 50% by 2030, and gas-based power plants can play a crucial role in achieving this target.

Challenges in building Gas-based Infrastructure:

• Underutilized Capacity: Despite having considerable capacity, gas-based generating stations remain underutilized, primarily due to commercial considerations.
• Non-availability of Affordable Fuel: India’s gas-based power plants are either stranded or operating at sub-optimal levels due to the non-availability of affordable fuel
• Lack of Domestic Gas Supply: The limited domestic gas supply has forced gas-based power producers to depend on LNG to meet their fuel needs, but the high cost of LNG has increased the variable cost of power, making it difficult to schedule in merit order dispatch
• Dependence on Imports: With barely half of the current gas consumption coming from local production, dependence on gas-based power plants can only be interim and not a long-term solution.

Initiatives taken by the Government:

• Setting up biogas plants: The Ministry of New and Renewable Energy, Government of India, launched the Biogas program to set up biogas plants for various applications, including power generation.
• Use of gas-based power for peaking and balancing: The government will use some gas-based power to meet the country’s peaking and balancing needs during the summer of 2024.
• Increasing gas-based power generation: The government wants the share of gas-based power to rise to 15% of India’s total installed power generation capacity.

Way forward:

• Diversification of fuel sources: Encourage the exploration and development of domestic gas reserves to reduce reliance on imported gas and mitigate price volatility.
• Investment in infrastructure: Develop infrastructure for transporting gas efficiently across the country to ensure a steady and reliable supply to power plants.
• Policy support: Provide long-term policy certainty and incentives for investment in gas-based power generation, including tax breaks, subsidies, and assured purchase agreements.

Mains PYQ 

Q  Environmental Impact Assessment studies are increasingly undertaken before a project is cleared by the Government. Discuss the environmental impacts of coal-fired thermal plants located at coal pitheads. (UPSC IAS/2014)

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