In addition to the remarkable growth in India’s renewable energy sector, the global landscape is evolving, with significant implications for sustainable energy initiatives. The ongoing COP28 conference is poised to be a crucial platform for nations worldwide to deliberate and implement strategies to combat climate change with a special focus on the mobilisation of climate finance and structural reform of the global financial system.
India has emerged as a centre point for renewable energy investments, witnessing over $78 billion of capital infusion into the renewables sector since 2014. With a workforce of huge potential, access to affordable capital, and ease of doing business, India has emerged as an attractive location for establishing renewable energy facilities. Enduring power purchase agreements at assured rates and a resilient grid network bolster the returns on investments. Presently, a pipeline of renewable energy ventures, valued at around $197 billion, is progressing across the nation. Numerous Indian states have committed to distinctive renewable energy targets, further supporting the goals of clean and renewable energy.
Amidst this ever-changing scenario, the extensive possibilities for innovative and impactful intervention in reshaping India’s energy accessibility story become evident. With rising energy demands and environmental concerns, innovative solutions are essential to meet our targets for emission reduction and energy security, and investments in them are paramount. These investments drive technological advancement, enhance grid integration, and drive down costs. They create jobs, align with India’s commitments for a greener future and pave the way for clean energy access for all.
Emerging venture capital startups in clean energy
The investments pouring into India’s renewable energy sector are not only fostering the growth of established ventures but also nurturing a burgeoning ecosystem of clean energy startups. Venture capital has become a crucial catalyst, enabling the translation of innovative ideas into impactful solutions. The landscape has witnessed a surge in cleantech venture capital activities, with the Indian renewable energy sector experiencing a substantial growth of 100 percent to $1.6 billion during the fiscal year 2021-22. This influx of capital is instrumental in driving technological advancements, enhancing grid integration, and ultimately reducing costs, contributing significantly to India’s commitment to a sustainable and greener future.
Public Sector Initiatives
Government-led interventions, in the form of grants and strategic initiatives, are pivotal components of India’s renewable energy narrative. The Production Linked Incentive (PLI) Scheme, with a fund allocation of Rs 24,000 crore, the PM KUSUM scheme, the Grid Connected Solar Rooftop Scheme, and the Solar Park Scheme are initiatives aimed at boosting indigenous production of renewable power equipment.
Collaboration between public and private sectors
Public-private partnerships (PPPs) have emerged as a crucial strategy to scale up indigenous solutions and align with the government’s energy efficiency goals. These partnerships not only provide additional revenue for sectors facing funding and technology constraints but also facilitate high-risk capital and access to cutting-edge technologies. The collaborative environment nurtured by PPPs enhances project implementation efficiency and fosters innovation, contributing to the overall effectiveness of public services in the renewable energy sector. Through joint initiatives such as developing renewable energy projects and implementing energy efficiency measures, private-sector collaboration can support industries to accelerate energy transition solutions. It can identify financing opportunities for projects and programs of common interest in grid-based renewables, distributed renewables, and transition areas. For instance, the global-level RE100 corporate initiative aims to source 100 per cent of multinationals’ electricity consumption from RE.* Setting timely targets encourages corporates to invest better in RE for quicker implementation.
Advancing the dialogue during COP28
In November 2023, The Energy Transition Dialogues (TETD) focused on advancing a people-centric approach to energy transition, was organised. The Dialogues culminated with the release of a TETD communiqué: a ‘Blueprint for a People-Positive Energy Transition.’ This blueprint aims to expedite the shift towards sustainable energy in India and across the globe. Building upon these discussions, the Alliance is gearing up to amplify conversations on securing funding for clean energy initiatives and implementing cutting-edge technologies. This commitment is being emphasised on the global platform at COP28, demonstrating a dedicated effort to drive substantial change worldwide.
Looking ahead, the future growth outlook for renewable energy in India remains highly promising. In 2022, solar and wind energy collectively accounted for 99 per cent of the overall capacity added, showcasing the dominance of these clean energy sources. With India’s projected economic growth exceeding 7 percent in the coming years, the combination of a burgeoning economy and increasing energy demand provides an ideal backdrop for the accelerated adoption of renewable energy solutions. As India continues its trajectory towards a sustainable and green future, the collaborative efforts of government, private entities, and global alliances and partnerships are crucial in shaping a resilient and environmentally conscious energy landscape.
The writer is Vice President-India, Global Energy Alliance for People and Planet (GEAPP).
