IEEFA

Amid the troubles of the coal-dominated grid, variable renewable energy has a place in ensuring reliable supply

Given 60% of India’s land area is farmed, agrivoltaics (pairing solar with farming) holds special promise for the nation to accelerate its transition to clean energy. However, the roll-out of agrivoltaics in India cannot proceed without addressing the various policy and regulatory challenges. 

A report has stated the renewable-plus-fossil fuel model is the best short term option to meet the assured supply conditions in the Solar Energy Corporation of India’s round-the-clock power tenders. Further out, as the cost of batteries decline, that technology is likely to become the most viable option for providing critical, non-intermittent power.

The International Energy Agency predicts that India will record the world’s fastest growth in energy consumption from buildings through 2040. The energy demand could create a big market for solar installers and equipment providers, particularly in the commercial and industrial sector. While building codes now include provisions for renewable energy integration, effective implementation will be key to ensuring compliance.

Funding avenues available to solar developers range from green bonds and multilateral development bank loans to infrastructure investment trusts.

India has seen substantial activity in the domestic battery storage and green hydrogen markets, from the entry of Reliance and Acme Solar in green hydrogen to gigawatt-scale battery storage tenders by NTPC and the Solar Energy Corporation of India (SECI). There are more private ventures in the offing, indicating the government’s policy push is in the right direction.  

A new report finds the current credit rating mechanism for power distribution companies in India is highly linked to their operational and financial performance. The report highlights the need to revise discom ratings to reflect their green mandates, decarbonization plans, and tariff implications to resolve the challenges of payables (and receivables).

Today, both Reliance and Fortescue are realizing the huge investment, employment, import replacement and export opportunities in zero emissions industries of the future, both for India and Australia. And they look to be leading the way, fully supported by global financial institutions increasingly seeking to deploy trillions of patient capital in low volatility, non-commodity price exposed zero-emissions energy sources of the future.

Rooftop solar growth in India has so far largely been driven by a few large creditworthy organizations in the commercial and industrial sector. However, if accessible financing options are made available, growth can also be replicated in micro, small and medium-sized enterprises (MSMEs) as well, says a new report.

Recovering valuable raw materials from end-of-life solar panels and batteries presents a great opportunity for India to secure their future availability as the nation chases its ambitious renewable energy targets.