Outlook for gas-based power in India-III: Is there a fit at all?
For the gas supplier eying the power generation market in India, it is important to have a clear and objective look at the market. 8Today, while grid level cost of renewable power has fallen to the variable cost of coal, even standalone rooftop solar power supply is at around Rs 5/kwh. Gas based power can be, depending on the price of LNG, twice as expensive at the outer band. 8This brings in a new twist entirely to the whole paradigm. 8The point to also note is that almost 50% of the sale of electricity today is above the breakeven price of rooftop power today. 8The old cross-subsidy models in electricity will have to be junked. And there is now a real possibility of large customers moving out of the grid entirely or tapping the grid only when needed. 8There are innovative power supply models now available, which combines renewable energy with diesel generation sets to provide seamless power in off-grid locations. 8Is there a possibility of gas turbines replacing diesel generation sets in this niche segment? 8Whatever else happens, we can expect some dramatic disruptions in the business models surrounding the power sector. Click on Reports for more