- The government has directed Gas-Based Generating Stations under Section 11 of the Electricity Act, of 2003.
- It allows the government to order a generating company to operate and maintain a generating station in exceptional circumstances.
- Similarly, the government has been promoting a gas-based economy to ensure energy security.
- Natural gas is a fossil fuel energy source. The largest component of natural gas is methane.
- Need for gas-based economy
- Reduce Greenhouse gas emissions: As per International Energy Agency, on average Coal-to-gas switching reduces emissions by 50% when producing electricity.
- Backup to Renewables: Natural gas plants start quickly and can fill the electricity grid gap when renewables aren't producing enough.
- Meeting international commitment: contribute towards achieving net zero by 2070 and meeting the targets of Nationally Determined Contribution targets.
- Challenges related to gas-based economy
- Small share in energy mix: It was just above 6% in 2022.
- High import dependence: India imported 48.2% of its natural gas in FY22.
- The fertilizer sector has the largest share in the overall consumption of natural gas which is highly subsidized.
Government initiatives to promote gas-based economy
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