As Natural Gas gets Cheaper, Your Cost Savings From Energeia's Dual Fuel Gensets to Rise
With Energeia’s understanding of regulations issued for Dual Fuel, and our exposure to having completed more than 100 dual fuel transitions for diesel generators, we can help you not only meet regulatory requirements but also cut costs and emissions.
Consumers across India have received relief after a year of record high gas prices as the government has announced a reduction of up to 10% in Natural Gas prices effective from April 8, 2023.
This price cut is especially advantageous for diesel generator owners in Delhi-NCR. The Commission of Air Quality and Management (CAQM) has banned the use of diesel generators from May 16 and mandated the use of up to 70% Natural Gas and 30% Diesel, making the reduction in Natural Gas prices a timely benefit.
The CAQM is an essential body, appointed by the Supreme Court and responsible for managing air quality in Delhi and its adjoining areas. Its efforts to promote Dual Fuel technology are considered a crucial step in combating air pollution, as a comprehensive study by the central government through the National Clean Air Programme revealed that diesel generator sets contribute up to 18% to ambient air pollution in non-attainment cities.
How the pricing has changed
The Indian government announced a revision to the pricing formula for Natural Gas following a meeting of the Cabinet Committee on Economic Affairs, which was chaired by Prime Minister Narendra Modi on April 6.
Under the new pricing formula, the Natural Gas produced from old fields, previously benchmarked against gas prices in four surplus nations, will now be indexed to 10% of the price of imported crude oil basket.
The revision now sets a maximum cap of 6.5 dollars per one million British Thermal Units (MMBTU) of natural gas. This change is expected to result in lower prices for customers, including those who use natural gas in Dual Fuel systems. Compared to the current prices of Rs 60-65 per standard cubic meter (scm), this could lead to a price reduction of up to 10%.
More Savings with Energeia’s Dual Fuel Technology for DG
If you are in Delhi-NCR and have a generator that has a capacity of up to 800 kW, you need to convert your genset to operate on Dual Fuel. The deadline set by the Supreme Court-appointed CAQM is fast approaching and ends on May 15th.
With the recent price drops in Natural Gas, converting to the Dual Fuel system has become an even more attractive option.
To better understand the potential savings, let's consider an example. If you're using an 800 kW dual-fuel generator, the cost savings per hour will vary depending on the amount of natural gas it consumes. On average, you can expect to save between Rs 2,100 to Rs 3,000 per hour.
By partnering with Energeia and utilizing our superior technology, your generator will efficiently use Natural Gas, mixed with Diesel, to provide optimal results. You can expect to see your investment payback within just 330 hours of running time.
Similarly, Energeia can help you find out how much you can save across different generator loads. Reach out to us at +91 9319271849 to know more now.
Why Dual Fuel is Here to Stay
One of the first notable efforts to promote Dual Fuel technology was made in 2019 with the launch of the National Clean Air Programme. The programme set a target of reducing particulate matter by 40% by 2026, prompting a recommendation to shift diesel generators to Dual Fuel.
This recommendation was picked up by the National Green Tribunal, which passed it on to all state pollution control boards (SPCB) to implement. The CAQM, which replaced the Environment Pollution Control Authority, issued directives to Delhi, Rajasthan, Uttar Pradesh, and Haryana to convert different loads of Gensets to Dual Fuel within different time frames. These directives were issued in February 2022, September 2022, and February 2023. (To read more about the directives over the years, click here.)
At Energeia, we understand the regulations for Dual Fuel and have experience completing over 100 Dual Fuel transitions for diesel generators. Our expertise can help you not only meet regulatory requirements but also cut costs and reduce emissions.
(*The above savings are an estimation, which is provided based on some conditions. Your actual savings will vary on the basis of the Diesel Generator’s health ( i.e age, BlowBy, vibrations, exhaust temperature, and other parameters ), actual load pattern, and running hours.
Diesel and Piped Natural Gas (PNG) Prices vary by date and location too.)