Speaking at the webinar, Deepesh Nanda, CEO, Gas Power, GE South Asia, asserted, “ COP 26 was quite significant in the Indian context. With Prime Modi setting a decarbonization target of 2070 set a precedent for other countries. We are also set to increase our indigenous renewable capacity to 500 gigawatts by 2030. However the transition is a balancing act with regard to intermediaries in the energy mix. We have to keep in mind the element of cost. If we don’t keep the cost element in mind then it will not be practical for the Indian consumer. So, the key challenge is accomplishing decarbonization in an affordable manner.”
The country has curtained faced roadblocks and challenges that have only served to strengthen its resolve towards its ESG goals. “India is on its path to achieving these goals despite roadblocks in the form of COVID for the past 2 years. Despite challenges, we have achieved through renewable sources more than 154 gigawatt. If we account for only solar and wind as renewable sources then India’s power generation from these is already more than 100 gigawatt. Ramping up renewable power generation capacity, finding intermediaries for the transition to net zero among other facets are some of the challenges that India’s sustainability ambitions face.,”observes Shailesh Kumar Mishra, Director (PS), SECI .
But, how will this shift towards decarbonization impact life, industry, and commerce. Namrata Rana, Director, Futurescape offers her perspective, “We are in the middle of the biggest shift since the industrial revolution. Our approach to energy is going to transform the way we make things, the way we grow things, and also how we transport things around us. Pretty much all aspects of our economy are now going to change. This fundamentally means that our economic system is in some kind of turbulence. This is not just for India but the entire world. “
India’s energy mix has also made some progress with regard to renewables. “India is on its path to achieving these goals despite roadblocks in the form of COVID for the past 2 years. Despite challenges, we have achieved through renewable sources more than 154 gigawatt. If we account for only solar and wind as renewable sources then India’s power generation from these is already more than 100 gigawatt. Ramping up renewable power generation capacity, finding intermediaries for the transition to net zero among other facets are some of the challenges that India’s sustainability ambitions face, “avers Shailesh Kumar Mishra, Director (PS), SECI.
Another critical challenge that India must overcome is financing renewable technologies and innovation. To achieve this, the participation of stakeholders, especially from financial institutions, is of significance. R. Lakshmanan, Executive Director, REC Limited offers his insight on the necessity of building the right framework for financing the shift to renewables, “It’s important that we have the right framework for investment and financing when it comes to achieving the energy transition. For renewable sources that are coming in, to have the right kind of financing, REC as a financial institution is aggressively looking at supporting the government’s goal in terms of supporting renewable financing. We have been able to facilitate the industry with a longer tenure of loans. Earlier it used to be 15 years and now we have gone up to 20 years in case of renewable sector loans. We are also in touch with multilateral financing agencies for creating separate lines of credit for renewables at a cheaper price.”
Undoubtedly, India has to accord priority areas for its energy transition. The country also the unique opportunity to make renewable energy affordable by leveraging economies of scale and innovation. In that sense, India could be poised to become a world leader in renewables once its ESG ambitions garner stronger momentum.