CNG poised for significant growth as India focuses on energy transition: Crisil
The city gas distribution (CGD) sector is at the core of India's energy transition, with
compressed natural gas
, in particular, poised for significant growth, according to a report by
Crisil
Intelligence.
This projected growth, according to Crisil, will be powered by government thrust, urban mobility demand, and expanding infrastructure.
With more than 18,000
CNG
stations proposed and 12 crore households unlocked through licensing rounds, the momentum remains strong.
"With the top states continuing to anchor demand, the next phase of growth should come from new geographies, backed by evolving gas-allocation patterns, private investments and aggressive vehicle conversion trends," the Crisil report titled 'City Gas Pulse' read.
On the other hand, the competitive intensity is rising, exclusivity periods are closing, and infrastructure gaps are being bridged selectively.
City Gas Pulse provides a sharp, state-wise and player-wise view of CNG demand evolution, infrastructure rollout, investment concentration and market readiness.
CNG is becoming the focal point of India's energy mix and the city gas distribution (CGD) sector's growth as the country works towards achieving a 15 per cent share in the primary energy mix for natural gas.
According to Crisil, expansion of geographical areas and the increasing demand for cleaner mobility position CNG as a viable and sustainable alternative to traditional fuels.
"Regional infrastructure development and readiness play a significant role in enabling wider gas access amid a shift in market focus to electric vehicles," read the report.
"CNG remains competitive despite evolving allocation and pricing pressure," it added.
India meets a sizable portion of its energy needs through fossil fuels, and various renewable energy sources and relatively cleaner energy sources are seen as an avenue to reduce dependence on conventional sources of power.
Green energy for climate mitigation is not just a focus area for India; it has gained momentum globally.
At COP26 held in 2021, India committed to an ambitious five-part "Panchamrit" pledge. They included reaching 500 GW of non-fossil electricity capacity, generating half of all energy requirements from renewables, and reducing emissions by 1 billion tonnes by 2030. India as a whole also aims to reduce the emissions intensity of GDP by 45 per cent. Finally, India commits to net-zero emissions by 2070.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
14 hours ago
- Time of India
CNG poised for significant growth as India focuses on energy transition: Crisil
The city gas distribution (CGD) sector is at the core of India's energy transition, with compressed natural gas , in particular, poised for significant growth, according to a report by Crisil Intelligence. This projected growth, according to Crisil, will be powered by government thrust, urban mobility demand, and expanding infrastructure. With more than 18,000 CNG stations proposed and 12 crore households unlocked through licensing rounds, the momentum remains strong. "With the top states continuing to anchor demand, the next phase of growth should come from new geographies, backed by evolving gas-allocation patterns, private investments and aggressive vehicle conversion trends," the Crisil report titled 'City Gas Pulse' read. On the other hand, the competitive intensity is rising, exclusivity periods are closing, and infrastructure gaps are being bridged selectively. City Gas Pulse provides a sharp, state-wise and player-wise view of CNG demand evolution, infrastructure rollout, investment concentration and market readiness. CNG is becoming the focal point of India's energy mix and the city gas distribution (CGD) sector's growth as the country works towards achieving a 15 per cent share in the primary energy mix for natural gas. According to Crisil, expansion of geographical areas and the increasing demand for cleaner mobility position CNG as a viable and sustainable alternative to traditional fuels. "Regional infrastructure development and readiness play a significant role in enabling wider gas access amid a shift in market focus to electric vehicles," read the report. "CNG remains competitive despite evolving allocation and pricing pressure," it added. India meets a sizable portion of its energy needs through fossil fuels, and various renewable energy sources and relatively cleaner energy sources are seen as an avenue to reduce dependence on conventional sources of power. Green energy for climate mitigation is not just a focus area for India; it has gained momentum globally. At COP26 held in 2021, India committed to an ambitious five-part "Panchamrit" pledge. They included reaching 500 GW of non-fossil electricity capacity, generating half of all energy requirements from renewables, and reducing emissions by 1 billion tonnes by 2030. India as a whole also aims to reduce the emissions intensity of GDP by 45 per cent. Finally, India commits to net-zero emissions by 2070.
Hans India
15 hours ago
- Hans India
India's power capacity jumps by 56 pc from 305 GW to 476 GW in 10 years
New Delhi: India's power sector has seen robust expansion driven by rising demand, infrastructure development, and strong policy support for both conventional and renewable energy sources over the past 10 years. The country's total installed capacity has jumped by over 56 per cent from 305 gigawatts (GW) in 2015–16 to 476 GW as of June 2025, according to official figures released on Sunday. Electricity generation has increased from 1,168 billion units (BU) in 2015–16 to an estimated 1,824 BU in 2024–25. Power shortages dropped from 4.2 per cent in 2013–14 to 0.1 per cent in 2024–25. Besides, over 2.8 crore households were electrified, and per capita electricity consumption increased by 45.8 per cent during this period. India's total installed power capacity of 476 GW is led by 240 GW of thermal, 110.9 GW of solar, and 51.3 GW of wind power, marking a strong shift towards renewable energy and energy security. As one of the fastest-growing major economies, India plays a central role in the global energy transition. Its energy demand is expected to grow at the fastest rate among major economies, driven by sustained economic growth. Consequently, India's share in global primary energy consumption is projected to double by 2035. Over the past eleven years, India has made remarkable progress in the renewable energy sector. In line with the commitment made at COP26, the Ministry of New & Renewable Energy (MNRE) is working tirelessly to achieve 500 GW of installed electricity capacity from non-fossil fuel sources by 2030. As of June 2025, the country has already achieved 235.7 GW from non-fossil fuel sources, comprising 226.9 GW of renewable energy and 8.8 GW of nuclear power, accounting for 49 per cent of the total installed power generation capacity of 476 GW. This marks a significant step toward India's decarbonisation goals and its pledge to a sustainable future. As per IRENA RE Statistics 2025, India ranks 4th globally in Renewable Energy Installed Capacity, 4th in Wind Power, and 3rd in Solar Power capacity. Expansion in renewable energy capacity: Installed RE capacity has grown from 76.37 GW in March 2014 to 226.79 GW in June 2025, an increase of nearly 3 times, with its share in overall power generation increasing from 17.20 per cent to around 22.2 per cent. In addition to the installed capacity, 176.70 GW worth of renewable energy projects are under implementation, with 72.06 GW under bidding stages. The country's solar capacity has increased more than 39 times, from 2.82 GW in 2014 to 110.9 GW in 2025, including a record 23.83 GW added in 2024–25 alone. There have been impressive gains in manufacturing capacity as well as with Solar PV module capacity surging from 2.3 GW to 88 GW, a 38-fold increase. Solar PV cell capacity grew from 1.2 GW to 25 GW, a 21-fold increase. Energy Sector India has also emerged as a global leader in wind energy, particularly in onshore wind power. With an evolving manufacturing ecosystem, supportive policies, and new strides in offshore development, the country is making significant progress in both capacity addition and infrastructure. India currently ranks 4th in the world for installed wind power capacity.
Time of India
17 hours ago
- Time of India
CNG poised for significant growth as India focuses on energy transition: Crisil
The city gas distribution (CGD) sector is at the core of India's energy transition, with compressed natural gas , in particular, poised for significant growth, according to a report by Crisil Intelligence. This projected growth, according to Crisil, will be powered by government thrust, urban mobility demand, and expanding infrastructure. With more than 18,000 CNG stations proposed and 12 crore households unlocked through licensing rounds, the momentum remains strong. "With the top states continuing to anchor demand, the next phase of growth should come from new geographies, backed by evolving gas-allocation patterns, private investments and aggressive vehicle conversion trends," the Crisil report titled 'City Gas Pulse' read. On the other hand, the competitive intensity is rising, exclusivity periods are closing, and infrastructure gaps are being bridged selectively. City Gas Pulse provides a sharp, state-wise and player-wise view of CNG demand evolution, infrastructure rollout, investment concentration and market readiness. CNG is becoming the focal point of India's energy mix and the city gas distribution (CGD) sector's growth as the country works towards achieving a 15 per cent share in the primary energy mix for natural gas. According to Crisil, expansion of geographical areas and the increasing demand for cleaner mobility position CNG as a viable and sustainable alternative to traditional fuels. "Regional infrastructure development and readiness play a significant role in enabling wider gas access amid a shift in market focus to electric vehicles," read the report. "CNG remains competitive despite evolving allocation and pricing pressure," it added. India meets a sizable portion of its energy needs through fossil fuels, and various renewable energy sources and relatively cleaner energy sources are seen as an avenue to reduce dependence on conventional sources of power. Green energy for climate mitigation is not just a focus area for India; it has gained momentum globally. At COP26 held in 2021, India committed to an ambitious five-part "Panchamrit" pledge. They included reaching 500 GW of non-fossil electricity capacity, generating half of all energy requirements from renewables, and reducing emissions by 1 billion tonnes by 2030. India as a whole also aims to reduce the emissions intensity of GDP by 45 per cent. Finally, India commits to net-zero emissions by 2070.
