DIESEL AND NATURAL GAS GENSETS

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A natural gas Genset works in a manner similar to other Gensets. The most basic difference between Genset is the fuel that is used to power the utility. In this case, the source of energy to start the generator is a natural gas that is available at 1/3 price of diesel Rs.38-42/SCM and is piped directly to the consumer’s door for uninterrupted usage.

 

The four most obvious advantages of using natural gas as a fuel to generate electricity are that it is cleaner, less expensive, efficient, and easily piped. It does not require any handling, storage and leads to zero pilferage. Emissions are a fraction of diesel-powered Gensets hence, allowed to run year-round irrespective of DG ban.

 

In comparison to oil and coal, the emissions of sulfur, nitrogen, and carbon dioxide are considerably lower. Hence, natural gas is one of the cleanest fossil fuels when it burns.

Another advantage of natural gas generators is that it does not produce a pungent odor, which is fairly common in generators powered by oil or diesel.

 

While the High & Mid Horse Power Genset segment has traditionally been dominated by Cummins, Caterpillar, Perkins, and MWM selling directly or through their dealers that assemble the sets by adding alternators, enclosures, and control panels. 

 

Caterpillar sells 200-3000KVA Diesel Gensets, Cummins India (KKC), Perkins, etc. List of foreign companies has a distinct advantage over their Indian peers, as they have access to their parent’s technology and product portfolio, which can be replicated and localized for the Indian market. This helps them to have the shortest timeline to launch new products.

 

Among the Indian DG sets market, the LHP (<160KVA) segment constituting 30,000 units annually is the most competitive, with the presence of 8-10 organized (primarily Indian) players along with Chinese and local players. Price is the key criterion for decision-making, and therefore, margins are also the lowest in this segment.

 

Mahindra, Ashok Leyland, KOEL have traditionally been very strong in the low to medium HP (35-750KVA) DG set market. However, some indigenous suppliers who import knocked down units from China have been actively selling generators to telecom, commercial, residential, manufacturing, hospitality, and restaurants creating intensive pressure on the price point. Unlike other developing countries, the generator rental and leasing business are still in an inceptive stage in India. The rental market for DG sets is expected to grow in the future with the time of growing economy, when the GDP grows, demand for power increases simultaneously and power rental and PPA business too grows.

 

A natural gas generator has a higher capital cost compared to an equivalent diesel-powered generator. The OPEX is much lower due to the price parity between natural gas and diesel as well as low maintenance costs. A healthy ROI and cost recovery can be achieved in close to 600-700 operating hours or in under a year of usage. 

 

Allset Energy is a clean energy business in Gurgaon, India that aims to replace highly polluting diesel generators used for standby electricity supply with clean and cost-effective Natural gas generators. 

 

We have currently authorized sellers of various solutions for Natural Gas based Gensets to facilitate our initial phase of generation through a clean natural fuel source. Secondly, our E-COGEN™ Hybrid Fuel Systema Bi-Fuel Diesel-Natural Gas kit can be retrofitted on any diesel engine to infuse gas during combustion. Hybrid fuel systems are a great solution to switch over from diesel to natural gas. 

 

During the first phase starting in 2018 until December 2021, our focus has been to market natural gas generators in the Northern Indian industrial zones located in Haryana, Punjab, Uttar Pradesh (UP), Uttarakhand, and Rajasthan due to their close proximity to the National Capital Region of Delhi which is the hub of commercial activity. In this phase, we aim to do complete end-to-end turnkey installations of Gensets and give access to the gas pipeline inside the premises.