Gas for decentralized power has for long held a lot of promise but somewhat failed to take off. Increased focus on climate change as a topic and historically low gas prices have brought back focus on what’s considered a low hanging fruit towards decarbonizing the economy
or the government, it presents an opportunity to inch closer to its goal of increasing share of gas in primary energy mix from ~6.5% to 15% by 2030 (with unconstrained potential equal to ~50% of current gas sales). Realizing projected 2030 potential will also help meet 20% of India’s Paris agreement target for emission intensity reduction. Moreover, large scale adoption will help reduce required investment in expensive transmission capacity to support large scale renewable addition given its complementary nature (high ramp up/ down rate while having 45% lower GHG emissions vs. similar coal based captive).
For large industrial and commercial establishments it offers a greener, cheaper and more stable alternative to grid based power while for gas retailers, this segment presents large single location demand centers which will become especially attractive in capitalizing opportunities in other retailer’s license areas post operationalization of open access