Natural Gas in India: An Assessment of Demand from the Electricity Sector

Working Papers

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Program on Energy and Sustainable Development Working Paper #66

October 2007

WP 66, IIM, Electricity

PESD has concluded a two year collaborative study on the Indian natural gas market with the Indian Institute of Management - Ahmedabad. The study explores gas demand to the year 2025 in the electricity sector under a range of different policy and economic scenarios.

The study concludes that coal is likely to remain the dominant fuel in the power sector, but opportunities exist for gas in reducing regional air pollution and providing peaking power.

Regional air pollution constraints in the power sector - already underway in certain parts of India could reduce carbon dioxide emissions by over 100 million tonnes per year. Reforms underway in the Indian coal sector, however, could bring a surge in new supplies, which would undermine the opportunities for gas in the power sector.

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