When the entire world is struggling to come to terms with climate change, India is emerging to be the home of one of the largest clean energy production programs. The prime minister has announced that India aims to go for net-zero emissions by 2070 and that 50% of its energy will come from renewable sources by 2030.
India accounts for close to 1/6 of the world’s population, and in no time, it would become the highest populated country in the world. This means that the demand for energy is going to rise exponentially. With rapid industrial growth, growing urbanization, and enormous population growth, the demand for energy will grow and spiral upwards, doubling numbers by 2040.
For a large period of time, India had to rely on coal and fossil fuels to meet its energy requirements. The time has come for green energy companies in India and the entire sector at large to step forward and ramp up energy production. It is not a surprise to see this sector grow by 17.5% between 2014 to 2019, ensuring that green energy makes up for 10% of total energy production in India. At the same time investments in this sector from both foreign and domestic sources have boosted its prospects. Over US$ 42 billion of investments have come across this way with around US$ 7 billion of FDIs. Sponsors like Abu Dhabi Investment Authority, SoftBank, Brookfield, CPPIB, and Sembcorp among others have invested in green and renewable energy sources in India.
This transition to clean energy is not only beneficial from a climate lens but also from an economic lens. It would create huge employment and livelihood opportunities. If set in the right direction, it can generate a market worth US$ 80 billion.
India has made incredible progress in the last decade bringing electricity to millions and paving a path for green energy solutions. But the goal is yet far away. There are few dampeners and short-term challenges that can hinder progress. First and foremost is transmission infrastructure. There needs to be heavy investment in this area to transmit energy generated to the rural corners of the country. The second potent problem comes in the form of land acquisitions hassles. The government needs to intervene, ease out processes, and make land acquisitions easy. This would pave way for Indian and foreign companies to start producing renewable energy. At the same time, market education and awareness should be continued and ramped up so that people realize and adopt green energy.
The battle against climate change cannot be won in a day. One needs to start small, build confidence, implement learnings, and then take the leap towards transformational changes. For that government needs to promote this sector, and put in investments from itself and through foreign investors. India has the capabilities to become a world leader in green energy solutions and with the right support from the government and world forums, India’s success story will continue in an unabated manner.
India is a large developing economy with over 1.3 billion people. It would not be an exaggeration to state that India’s climate adaptation and mitigation ambitions supported by green energy companies in India will not just bring about change for India but for the entire planet.
Altilium is the integrated power trading and advisory setup that helps its clients to transition to greener and clean operations. We help clients in solving complex energy procurement and management challenges related to cost volatility, alternate sources of energy, and strategic shifting of dependence from the traditional market approach. With an overall team experience of 45 years in the Indian power sector, our array of services includes bespoke Electricity Regulatory Advisory, Energy Portfolio Management, Renewable Energy offtake & trade, open access services, and Renewable Energy Projects management, to name a few. Being one of the leading CERC (Central Electricity Regulatory Commission) approved power trading companies in India, Altilium is managing a trading volume of over 15 MUs (million units) of Renewable Energy every month for its clients PAN India, as of date.
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