Challenges to becoming a natural gas Indian bridge fuel

As India moves away from coal to low carbon and ultimately zero-carbon economy, could natural gas be a bridge fuel? In addition to environmental benefits, does natural gas include values ​​for the flexibility of the grid, which is more relevant to the future of high renewable energy (R)?

In the new worksheet, Rahel Tonggia explores the potential for natural gas in India’s energy mix, both in terms of competitive economics and its potential use, particularly in carbon emissions.

The real challenge is the overall cost-effectiveness of natural gas. Space prices for gas have, until recently, been lower since August 2020. Many analysts have overshadowed the tide of interest, the tide of demand in 2020, favorable weather conditions and spark of interest, and Covid 19. The alternative between coal and rye seems to be compressed between cheap and clean fuels. It remains high for the maximum price, but the amounts required for this are modest.

Natural gas plays a role in some of India’s growing industries or selected sectors. One important question remains – is this dispersed coal (like industrial) or other fossil fuels (liquids in transport or LPG in cooking)? This determines the benefits of carbon over time.

From economic to infrastructure issues, which delays its use, it is unlikely that natural gas will grow to 15% of the government’s portfolio or a significant downward trend in carbon emissions in India. .

The paper recommends that natural gas policies in India should not be decided in isolation, but should be within a broader, more comprehensive energy framework. Here are a few of the major needs for India’s energy policy.

• Better marking of prices and incentives

• Overcoming structural distortions

• Enabling innovation and change despite the turmoil in technologies and business models

As these improve, the role of gas will only increase, but better, it will be seen as a bridge fuel, not an Indian bridge fuel.

You can access the study by clicking here:

(Written by Rahel Tonggia)


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