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Disruptive technology and the Indian oil & gas sector-III: Gas may not be the ideal fuel for the power sector in India
Jan 16: The article then goes on to claim that gas may not be ideal fuel for the power sector
8This will demolish the basic argument of the gas supply lobby that a spurt in gas usage will come when gas based power plant are used to meet peaking power requirements in an environment where renewal power is increasingly in use.
8There is a move now to make coal-based plants ‘flexible’ so that they can balance the variable renewable power. If this were to happen, coal-based generation will receive a boost.
8While gas-based generation is often touted as a necessary accompaniment to wind and solar power, the example of Germany suggests that even coal-based power can play this role.
8Additionally, the emergence of renewable technologies has also adversely impacted demand for gas by displacing it in power generation.
8Coal-based power plants are going in for retrofits to serve as balancing units for renewables.
8The net impact on new gas demand has been negative (at least in the West where gas-based power generation is preferred over coal). Even for balancing variable renewable power, a number of technologies are available which will pose a challenge to gas as their prices fall over time.
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