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The renewable energy (RE) industry is teeming with activity. Policies that can change the country’s power mix and make it greener and cleaner, are incentivizing the industry.
Money is pursuing RE assets, which is assisting green power providers in adding new capacity each year. Increased production has decreased the cost of renewable energy, notably solar, to roughly Rs 2.50 per unit, which is less than the cost of thermal electricity, which is more than Rs. 4.
Smaller companies, such as Gautam Solar, a Delhi-based maker of solar panels, are not the only ones considering a larger investment.
Traditional power giants, NTPC, Tata Power, Adani Group, and JSW Energy, which relied on fossil fuels until recently, are shifting to renewable energy. They have definite plans to expand their renewables portfolio in the next few years.
The Adani Group has set out 75% of its anticipated capital expenditures to encourage green technology. Gautam Adani, chairman of Adani Group, stated at the recent Bloomberg India Economic Forum that he aspired to own the world’s largest renewable enterprise and has committed $70 billion to bring their aspiration to reality.
NTPC, India’s major power provider, intends to construct 60 GW of renewable energy by 2032. Tata Power is also chasing close, and has plans to increase its “clean and green” portfolio to 80% by FY2030.
Addressing climate change as a real threat to the planet, Tata Power is trying to quickly shift towards greener solutions of power generation, said Praveer Sinha, CEO & MD of Tata Power.
JSW Energy also plans to increase its renewable energy portfolio to 10 GW by 2025 and 20 GW by 2030. Prashant Jain, JSW’s Joint MD & CEO, said that the company will be able to reach its goal much earlier and their primary focus will be on green hydrogen, the cleanest form of energy.
Manish Gupta, senior director at Crisil, noted that “the shift to RE will be a long process, but it has begun,” citing the country’s electricity consumption of 1,400 billion units, 70% of which is sourced from coal. New investments in coal-fired power facilities have stopped.
Coal and renewable energy will coexist for a few more years, this is crucial for our country’s prosperity. However, if we can shift incremental demand to RE, that will be a huge opportunity for green power providers, said Jain of JSW.
With the exception of a few NTPC projects, conventional power companies are no longer engaging in thermal power. Tata Power is also shutting down their old power plans, including coal-fired and are adding RE capabilities.
Several captive purchasers of power are making the switch to green energy and are implementing green and environmentally friendly initiatives.