Centre and state governments have initiatives to support RE progress
Renewable energy (RE) providers should adopt a long-term vision, recognizing the availability of funding from international investors and the equity market’s interest in the sector, says Pinaki Bhattacharyya, Senior Member of FICCI Renewable Energy.
Also, collaboration between industry, solution providers, the financial sector, and the Central and State governments is crucial for a successful transition, said Bhattacharyya, who is CEO of AmpIn Energy Transition.
He was addressing an interactive session on Renewable Energy Transition for Commercial and Industrial Consumers organized by the Federation of Indian Chambers of Commerce and Industry (FICCI) and AmpIn Energy Transition on 23 Nov 2023. It showcased renewable energy solutions and technologies available for Indian industrial consumers, supporting their transition towards decarbonization and the net-zero journey.
“The eastern region is poised for an energy transition, offering industries potential savings of 20–30% by adopting renewable energy. The declining costs of renewable energy make it imperative for industries not to delay the shift,” said Bhattachryya.
“India is performing admirably compared to the global scenario in renewable energy generation, experiencing an annual growth rate of 6–7%,” noted Anish Mandal, partner at Deloitte India, as he presented trends of adopting RE solutions by commercial and industrial consumers.
Almost half of the demand stems from the commercial and industrial (C&I) sector, which has established its decarbonization objectives and attracted substantial investments, he continued.
“Additionally, both the Centre and State governments have introduced a range of initiatives to support and further this progress.”
Affordability is of utmost importance, and the storage costs are very high, Debasish Banerjee, Managing Director, CESC Ltd, pointed out.
Banerjee stressed, “It’s time for battery costs to come down. A balanced approach to energy affordability, security, and transition is essential. Once storage costs decrease, stored renewable energy can be an effective backup, especially during peak seasons.
“This summer, peak demand within our jurisdiction rose by 25–30%, reaching temperatures of 52–53 degrees Celsius. The total renewable energy capacity in the eastern states is approximately 80 GW, and efforts should be made to increase this capacity.”
Anil Razdan, Former Secretary of the Ministry of Power, underlined the promising prospects in the RE sector, and added that the transition has been gradual.
“Imperatives like global warming and rising sea levels compel us to embrace renewable energy solutions. Energy efficiency is a necessity, demanding a reduction in consumption.
“Our aspirations, mindsets, and lifestyles must undergo change. Collaborative efforts are needed to create pump storage facilities, tapping into every source of renewable energy, be it tidal power or electricity generation from river water,” said Razdan.
Ajay Kumar Pandey, Director (Regulatory & Trading), West Bengal State Electricity Distribution Company, shared steps being taken in West Bengal as for RE developments.
“We have been taking many steps; one of the oldest running hydro plants in Asia is situated here. Since 2007, we have had a fully operational 900 MW pump storage in Purulia, and plans are underway for four additional pump storage of similar capacity in the same location.
“Government clearance has already been obtained for a 500 MW floating solar unit. The primary challenges lie in mindset and commercial aspects, which must be addressed and overcome,” Pandey informed the interaction.
Odisha offers incentives to industries transitioning to renewable energy and actively encourage renewable energy solution providers to invest in the region, including setting up necessary plants, according to Hemant Sharma, Principal Secretary, Industries Department, Government of Odisha.
In his virtual address, Sharma underscored that energy efficiency and conservation are crucial.
“It is essential to encourage commercial and industrial (C&I) consumers to procure renewable energy from distributors through effective regulatory mechanisms, a practice already underway in Odisha.
“Assistance should be extended to industries with captive power plants, facilitating their transition to renewable energy despite the associated investments.
“Transitioning to renewable energy is now a necessity, not an option, with significant potential in the eastern region,” added Hemant Verma, Chairman of Chhattisgarh State Electricity Regulatory Commission.
“Chhattisgarh is offering incentives for both industries to shift to renewable energy and solution providers to establish plants in the state. A collaborative approach is deemed the most effective way forward.”
“India is a prominent player in the renewable energy market, holding the fourth position in installed capacity,” said Lalit Bohra, Joint Secretary, Ministry of New and Renewable Energy.
He highlighted steps the Centre took to encourage commercial and industrial (C&I) to go in for the transition.
“The government actively promotes renewable energy, encouraging C&I consumers to adopt it. Viability gap funding for energy storage has been introduced to facilitate the integration of large amounts of renewable energy into the grid.
“A significant milestone occurred with the notification of Green Open Access Rules 2022, enabling industries to transition to net zero.
“MNRE is seeking recommendations from both generators and consumers to accelerate the decarbonization journey further.” Fiinews.com
