Indian gas based power sector is likely to get a major boost with Australia willing to look at a regulatory framework for facilitating supply of gas at lower prices for India’s gas-fired power stations, which may hold the key to the success of the government's 100 GW (giga watt) solar dream envisaging round-the-clock clean and affordable power to all.
Australian resources and energy minister Josh Frydenberg said while the government could not determine the price, a regulatory framework could be worked out to facilitate lower rates through “vertical integration” with power plants. Earlier, Power, Coal and Renewable Energy Minister Piyush Goyal had proposed for adopting a new paradigm for pricing gas in accordance with the changed dynamics of the global hydrocarbons market, devastated by sustained oversupply and crashing price as well as demand.
The ministers agreed to set up five working groups that would focus on taking the dialogue forward. These would be in the areas of coal mining and clean coal technologies, LNG, including re-gasification technology, renewable energy, coal bed methane, and underground coal gasification, and smart grids and grid integration technology.Goyal said that "I can see energy becoming the most important and defining part of our engagement with Australia in the days to come."
Meanwhile, India and Australia agreed on enhancing cooperation in clean coal technology, renewable power and LNG in a bid to meet the burgeoning demand for cheap and environment-friendly energy. The two countries also talked about Free Trade Area (FTA), Adani Group's investment in Australia and the ties that the countries share at various levels.
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