As part of GAIL’s strategy to be an integrated gas major, the Company has diversified into gas based power generation. GAIL has a 5.96% equity stake in Gujarat State Energy Generation Ltd. (GSEG), a Special Purpose Vehicle formed by GSPC to generate gas based power . The total power generation capacity of GSEG is nearly 507 MW.

GAIL has installed wind energy projects of 118 MW capacity. The Company had started with a modest capacity of 4.5 MW wind energy in the state of Gujarat in the year 2009-10 for captive use. After the success of the wind project, additional Wind Energy Generation of 14.7 MW was installed in the state of Gujarat for captive use in the year 2011-12. The Company graduated to commercial production after commissioning 100 MW of wind energy projects in the states of Tamil Nadu and Karnataka in the year 2011-12.

In the year 2011-12, GAIL entered into solar power generation by winning the bid to set up a 5 MW Solar Plant under the Jawaharlal Nehru National Solar Mission in Rajasthan. The project was commissioned in February 2013 and is generating 25000-28000 kWh per day.