A large proportion of the developing world is held back by a lack of power. Investment in new gas-fired generation, in particular, is expensive and assumes the existence of a stable grid and a creditworthy offtaker. Indeed, the centralised model, focusing on large-scale power plants, is problematic in developing countries. A distributed power system of cheap renewables, with gas providing backup generation, could provide a far more cost-effective solution. Over the last year, Gas Matters has examined a number of ‘disruptive’ technologies and innovative business models for the future power mix – including batteries, smart grids, flywheels and compressed energy storage. In this instalment, Gas Matters explores the concept of distributed generation – a localised power solution that does not require a transmission grid – and its potential impact on global gas demand growth.
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