Gas Based Power Solutions
According to a study conducted by the Program on Energy and Sustainable Development at Stanford University, in coming years, the demand of natural gas for power generation would rise substantially in India. In electricity sector, stifling supply of coal, which is a preferred fuel for power generation because of its low cost, and tighter restriction on Sulfur emission would give favor natural gas as fuel for power plants. Additionally, liberalizing electricity sector could also lead to higher power production from gas based power plants.
Faced with this scenario, we feel that there is huge growth opportunity in gas based power segment and this is currently barely out of nascence. Because of our strong engineering capability, we have entered in this segment and started working on small power plants with less than 100 MW capacity. These include pure turbine based power plants as well as turbine and combined turbine and steam engine plants.
Our business model in gas based power is quite simple. We are starting with small distributed power plants with small capacities to reap cost advantage wherever available. After selling power output to local requirements, we are uploading excess power to the grid and selling it to even far off customers. Even with transmission charges, we have been able to beat the cost of our customers at remote locations.
Moving forward, we are going to scale up our capacity to 100 MW and to move closer to industrial belts of Delhi NCR and surrounding states. Our strength in this business is our expertise in gas distribution, which we are further strengthening by entering cross country pipeline network. This enables us to beat competition in landed cost of gas which in turn allows us the flexibility in power pricing.