Government Initiatives to Boost Gas-Based Power Generation
POWER & RENEWABLE ENERGY

Government Initiatives to Boost Gas-Based Power Generation

The Government of India is actively promoting gas-based power generation to improve energy efficiency and sustainability. Currently, gas-based power plants operate at a low Plant Load Factor (PLF), affecting their viability. To address this, the government has introduced policy measures aimed at increasing the availability and affordability of natural gas for power generation.

Key Policy Interventions Open General License (OGL) for LNG Imports

Liquefied Natural Gas (LNG) has been placed under the Open General License (OGL) category. Power plants can now import LNG on mutually agreed commercial terms with suppliers, ensuring flexibility and competitive pricing. During April 2024 – January 2025, power plants in India imported approximately 9.58 MMSCMD of natural gas. Competitive Power Procurement During Peak Demand

The government has periodically launched schemes to facilitate competitive procurement of power from gas-based plants, ensuring grid stability during peak demand periods. Expanding Natural Gas Infrastructure To increase the share of natural gas in India's energy mix, the government has undertaken several infrastructure and policy initiatives, including:

Expansion of the National Gas Grid Pipeline to enhance connectivity. Expansion of the City Gas Distribution (CGD) network to increase access to natural gas. Development of Liquefied Natural Gas (LNG) terminals to support growing demand. Prioritised allocation of domestic gas to CNG (Transport) and PNG (Domestic) sectors. Marketing and pricing freedom (with a ceiling price) for gas from high-pressure, deep-water, and ultra-deep-water reserves. Promotion of Bio-CNG under the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative. Government’s Commitment to a Cleaner Energy Mix The Minister of State for Petroleum and Natural Gas, Shri Suresh Gopi, provided this update in a written reply in the Rajya Sabha, reinforcing the government’s focus on enhancing gas-based power generation as part of India’s energy transition strategy.

The Government of India is actively promoting gas-based power generation to improve energy efficiency and sustainability. Currently, gas-based power plants operate at a low Plant Load Factor (PLF), affecting their viability. To address this, the government has introduced policy measures aimed at increasing the availability and affordability of natural gas for power generation. Key Policy Interventions Open General License (OGL) for LNG Imports Liquefied Natural Gas (LNG) has been placed under the Open General License (OGL) category. Power plants can now import LNG on mutually agreed commercial terms with suppliers, ensuring flexibility and competitive pricing. During April 2024 – January 2025, power plants in India imported approximately 9.58 MMSCMD of natural gas. Competitive Power Procurement During Peak Demand The government has periodically launched schemes to facilitate competitive procurement of power from gas-based plants, ensuring grid stability during peak demand periods. Expanding Natural Gas Infrastructure To increase the share of natural gas in India's energy mix, the government has undertaken several infrastructure and policy initiatives, including: Expansion of the National Gas Grid Pipeline to enhance connectivity. Expansion of the City Gas Distribution (CGD) network to increase access to natural gas. Development of Liquefied Natural Gas (LNG) terminals to support growing demand. Prioritised allocation of domestic gas to CNG (Transport) and PNG (Domestic) sectors. Marketing and pricing freedom (with a ceiling price) for gas from high-pressure, deep-water, and ultra-deep-water reserves. Promotion of Bio-CNG under the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative. Government’s Commitment to a Cleaner Energy Mix The Minister of State for Petroleum and Natural Gas, Shri Suresh Gopi, provided this update in a written reply in the Rajya Sabha, reinforcing the government’s focus on enhancing gas-based power generation as part of India’s energy transition strategy.

Next Story
Real Estate

Sources Unlimited Launches Aurora Collection Inspired by Twilight

Sources Unlimited unveils the Aurora Collection, a luxury lighting series inspired by the soft glow before dawn. Featuring spherical forms and metallic accents, the collection plays with reflections and shadows, enhancing interiors with layered illumination. Designed for floors, tables, ceilings, and walls, Aurora seamlessly integrates into diverse spaces, from homes to hospitality settings. Now available at Sources Unlimited, the collection redefines lighting as an artistic medium, transforming spaces with warmth, nostalgia, and timeless beauty...

Next Story
Real Estate

Build Capital Exits Second SRA Project Investment Near BKC

Build Capital has successfully exited its investment in an SRA project near Bandra-Kurla Complex, marking another milestone in its structured real estate financing strategy. The early-stage investment helped the developer complete rehab work and align the project with DCPR 2034, enhancing total economics. With a 2.25 lakh sq. ft. development potential and projected revenue of over Rs 7.25 billion, the project generated a 19.76 per cent IRR with 100 per cent on-time interest payments. Commenting on the milestone, Kuldeep Jain, CEO of Build Capital, stated: “Our strategic funding and acti..

Next Story
Real Estate

Küche7 Unveils Affogato: A Fusion of Luxury and Function

Küche7, India’s luxury stainless steel kitchen specialist, has launched Affogato, a sculptural kitchen design that merges aesthetics with functionality. Featuring deep brown panels with a brownstone texture, a curved marble-topped island, and a seamlessly integrated gas cooktop, Affogato redefines culinary spaces. Thoughtfully designed storage ensures a clutter-free experience, while soft grey flooring and an inlaid ceiling complete its refined appeal. More than a kitchen, Affogato embodies slow li..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?