Meet 40% of energy needs from grid by 2035, says committee

As India moves towards securing a Net Zero future, it needs to construct gas storage reserves and, for this, it may allow foreign companies to have stakes in these reserves, an energy transition panel has recommended. It also proposed that diesel-driven 4-wheelers be eliminated as soon as possible, starting with a ban on diesel-powered four-wheelers in all million-plus cities and all towns with high pollution by 2027. Other major recommendations of the panel include raising energy needs met through power flowing from the grid from 18% now to 40% by 2035, 10% blending of the compressed bio-gas in natural gas by 2030 and use of electricity for cooking by 25% of households by 2030.

Also ReadReliance to start gas production from MJ field this quarter “India needs to build strategic gas storage reserves to fill the large gap between the projected consumption of natural gas and domestic consumption… Overseas gas producing companies may also be offered a stake in such storage,” the Energy Transition Advisory Committee of the petroleum ministry said in its final report. It also listed several measures that the government can take to increase adoption of clean energy solutions. India has strategic oil storages with a capacity of 5.

33 MT at Vishakhapatnam (1. 33MT), Mangalore (1. 5MT) and Padur (2.

5MT) and can serve India’s crude oil requirement for about 9 days. In addition, two additional storage reserves are proposed. Worldwide, countries have understood the importance of underground storage reserves (UGS) and are continuously undertaking such UGS development projects, the panel said and added that “policy support is required in this matter”.

As of 2019, there were more than 650 operational UGS facilities with a gas storage capacity of 422 billion cubic meters (BCM). Present UGS facilities, spread across North America, Europe, CIS, Asia-Oceania, and the Middle East (mostly Iran). “This will strengthen the country’s energy security and shield it from disruptions and associated price fluctuations.

Presently, India doesn’t have any strategic gas reserves,” the energy committee noted. Around 80% of the global working gas storage happens in depleted fields and about 20% in salt caverns. India may consider establishing UGS facilities using depleted oil and gas fields of national oil companies, salt caverns and aquifers, it said.

“Needless to mention that these storages have no commercial viability but are of national importance and would require substantial funding. These depleted storages can be offered on a competitive basis to interested gas marketers,” it said. Also ReadGas-based power plants ready to meet peak demand Gas will help abate the carbon footprint of electricity for the commercial and industrial sectors, it added.

Gas usage could also eventually help transition towards the hydrogen economy by using the same infrastructure, subject to technical feasibility, to deliver hydrogen mixed gas which can provide early support to hydrogen growth. To displace coal and other higher carbon emitting fossil fuels for hard-to-abate industrial sectors, gas usage needs to be promoted. Gas can help meet increasing Indian energy demand pushed by tail-winds of increasing population, industrialization, and growing prosperity.

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