Shell Energy Asia plans to participate in the power value chain in India to resolve the issues of renewable intermittency by using the idle gas-based power assets. The LNG supplier is working with the government and regulators in various geographies to achieve a connection between the renewable plus gas-based power generation for maximum cost and environment benefits, even as it promises to provide round-the-clock (RTC) electricity to the government.
Shell, one of the largest oil and gas explorer and supplier, sees natural gas as the most suitable alternative to bundle with renewables to meet the grid intermittency challenge during night or when sun is not visible. Bundling natural gas with renewables will allow unhindered power generation for anytime of the day or night.
Ajay Shah, VP, Shell Energy Asia, told FE that Shell through its global pronouncements has expressed its aspirations to participate in the power or electricity value chain and form partnerships on the renewables and gas.
“Some of the early steps have been taken and the industry is open to such partnerships. We are also working with the government and regulators to see how this connection should be made. There are enough idle assets and we hope this connection should be made,” Shah said.
The firm believes as the renewable portfolio will achieve scale, in the medium to long term, grid stability will become a serious challenge. “We believe the flexibility of gas can be partnered with the intermittency of renewables to create grid stability. Gas can be brought onstream very fast compared with coal to generate power.” Also there are quite a few assets which are lying idle in India that can be efficiently used to bundle with renewables. “I am very optimistic of this energy clubbing and convinced that it is the piece of the puzzle for India,” Shah said.