India considers boosting the run rates of its gas-fired power plants during evening peak hours to support the grid amid the surge in renewable power generation, India’s Power Secretary Pankaj Agarwal said on Friday.
“For the last three years we have been studying whether gas plants can run for eight hours in the evening and remain shut during the rest of the day,” Agarwal said at a meeting with power plant executives, as carried by Reuters.
India has reduced in recent years its gas-fired power fleet from 25 gigawatts to 20 GW, due to idled plants for years that are now unfit to operate.
However, the country, where coal remains king but renewables rapidly expand, looks to keep the 20 GW gas-fired capacity to provide flexible baseload capacity to offset the intermittency of solar and wind power.
India is expected to import about 29 million tons of LNG this year, while its goal to almost double the share of gas in the energy mix to 15% will need import capacity of around 100 million tons, Kumar Singh, chief executive at Petronet Ltd, the biggest Indian LNG importer, said at the India Energy Week conference last month.
India, however, needs liquefied natural gas prices in Asia to nearly halve from current levels in order to significantly raise LNG imports and consumption, the executive added.
India is in no hurry to sign long-term LNG delivery deals as the country’s price-sensitive buyers stall talks and wait for the coming supply glut to pressure sellers into agreeing to lower prices.
But later this year, the LNG market is expected to tilt into oversupply and in a buyer’s market, in which India – and other price-sensitive buyers in Asia – could have the upper hand in negotiations with long-term LNG sellers.
Meanwhile, NITI Aayog, the policy think tank of the Indian government, said this week that India’s coal demand could more than double by 2050 from current levels under current policies.
By Tsvetana Paraskova for Oilprice.com
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