Scope of Emission Reduction Through Natural Gas in India

The growth in installed power generation capacity, from 1,362 megawatts (MW) to over 100,000 MW since independence, and the electrification of more than 500,000 villages is an impressive achievement. The per capita electricity consumption has also improved significantly. It may be noted, however, that annual per capita consumption, at about 355 kilowatt-hours (kWh), is still among the lowest in the world. Still, many households in a large number of villages have no access to electricity. The Ministry of

Power has set an agenda of providing power to all by 2012. To meet the projected power requirement by 2012, a capacity addition target of 46,500 MW has been tentatively fixed for central public sector undertakings under the Ministry of Power. At the state level, the state electricity boards (SEBs)/state utilities and private sector will add about 41,800 MW. is the primary source of energy for steam and thermal power generation in India. Its large-scale use also brings along with it environmental issues with respect to emissions of CO2 contributing to the greenhouse effect, sulphur oxides (SOx) and nitrogen oxides (NOx) causing acid rain, and particulates leading to health problems. In addition, fly ash generated as a result of combustion poses additional disposal hazards. All these issues call for the use of steam and thermal power generation technologies, which are more efficient and lead to minimum pollution of air, water, and land. The best option to mitigate the effects of the pollutants from the use of coal is to adopt technologies and policies which help the increase in the energy efficiency of all the processes from generation to end use.

Apart from renewable source of power which is either GHG free or GHG natural, power generation projects that either help in increasing the power generation efficiency or displace the use of high carbon intensive fossil fuel with lower carbon intensity fuel are eligible under CDM.

In 2000-01 31.5% of natural gas produced in the country was allotted to the power sector. In 2001-02 the share rose to 32.8%, this further rose to 35% and 37% in 2002-03 and 2003-04 respectively. In 2004-05, the share was close to 40% (39.3%). In 2001 about 11% of the installed capacity in the country was based on natural gas .The total installed power generating capacity as on march 2005 was 1, 18,419 MW out of which thermal segment accounted for 80,902 MW (69%).The latest figures suggest the total installed capacity as on June 2006 was 1, 26,089MW, thermal segment accounts for 83,272 MW i.e. 66% of the total. Gas based power plants account for 10.7% of the total installed capacity for power generation and 16.3% of the total thermal capacity for power generation ,further of the total planned capacity addition of 62213 MW during the next five year period of 2007-2012 about 9000 MW or 15 % is based on gas. Gas scores over all other fuels for power generation because of zero fuel storage cost, no ash handling equipment required, fuel gas desulphuriser not required, low capital cost, consistent operation at high PLF s, LNG fueled gas turbine yields higher thermal efficiency than those fed on Indian or imported coal, apart from this the gestation period for gas based plants is much smaller s compared to coal based plant. Presently the gas requirement of gas based power plants at 90% Plant load factor is 49.79 MMSCMD, whereas the supply to the power sector stands at 30.70 MMSCMD, last year shortage of gas has led to significant loss of around 6425.6 MU in generation capacity. Since 1990’s gas fired plants have contributed 20.3% of the new capacity created in the power sector. Consumption of power sector increased at a CAGR of 6.57% from 8801 mcm in 2000-01 to 12099 mcm in 2004-05. Due to severe supply constraints ,gas based power generation could not grow as fast as expected but The electricity act 2003 is expected to boost the demand for gas in the power sector due to lower capital costs(compared to coal base plant), higher efficiency(56% guaranteed gas turbine efficiency), lower gestation period, and higher standardization of the equipment of a gas fired plant as compared with a coal based plant .moreover the act also gives a boost to the captive power plants and given the high level of shortages, it is possible that many industrial users will install gas based captive power plants. According to the projections of Ministry Of Power, the gas requirement of gas based power plants at 90% peak load factor would reach 78.28 MMSCMD by March 2007and 142.8 MMSCMD by March 2012.

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