The renewable energy sector is globally driven by the need to mitigate climate change impact on environment. Within this larger paradigm, securing supply and enabling diversity in supply chain are top on the mind of countries that have charted out their own green energy pathways. This transition to green energy sources is a global reality that needs concerted policy and regulatory support.
According to International Energy Agency, global energy investment is set to increase by 8% in 2022 to reach US $ 2.4 trillion, with the anticipated rise coming mainly in clean energy. Simultaneously, IRENA data shows RE installed global capacity stood at 3,064 GW in 2021, of which approximately 1,700 GW came from wind and solar.
As far as India is concerned, Hon’ble Prime Minister Shri Narendra Modi’s address at COP26 Summit and country’s commitment towards Net Zero by 2070 has demonstrated country’s leadership position in clean energy. It has also bolstered India’s efforts in decarbonization. The aim of incorporating 500 GW of installed renewable energy by 2030 requires partnership amongst all stakeholders. While the Government is taking policy initiatives, the onus of seeing them through lies on the industry.
The Government of India’s ‘AatmaNirbhar Bharat Abhiyan’ (Self-reliant India campaign) launched in 2020 to deal with economic challenges posed by the pandemic aims to achieve self-reliance in all aspects of manufacturing. Clean energy technology and products are a crucial component of this campaign. Introduction of structural and procedural reforms, various production-linked incentive (PLI) schemes to attract investments in focussed sectors are part of this campaign.
PLI for high efficiency photovoltaic cells and Advanced Chemistry Cell (ACC) Battery for storage are particularly relevant for the renewable energy sector. Other policy intervention such as Policy on Green Hydrogen/Green Ammonia have also been well appreciated by all stakeholders and is expected to attract significant investments.
The State Governments are complementing the efforts of the Central Government in decarbonization of the economy and expanding RE in their energy mix. Amongst the top ten states which make up 90% of the RE installations in the country.
Rajasthan, Karnataka, Telangana and Madhya Pradesh are dominant in solar, whereas wind is the predominant energy source in Gujarat, Tamil Nadu, Maharashtra and Andhra Pradesh. Simultaneously, most states have announced dedicated policies to set up renewable energy projects and, also to incentivize manufacturing and storage systems. In addition, states are promoting ancillary industry.
As a result, investment in the renewable energy sector in India surged more than 125% year-on-year to touch a record US $ 14.5 billion in the financial year 2021-22[i].
In addition, green hydrogen (produced from electrolysis of water using RE) is gaining momentum. Green hydrogen can potentially transform even the hard-to-abate sectors such as steel and cement. The challenge, however, remains to bring the landing cost down to below US $ 2 per Kg.
The Green Hydrogen & Green Ammonia Policy is expected to promote investments and can play an important role in decarbonisation efforts by reducing emissions from industrial, power and transport sectors. India alone consumes nearly 6 MMT of grey hydrogen, and at least 2 MMT can be replaced by green hydrogen/green ammonia from the conventional sectors – refineries and fertilizer industry. It is estimated that if India is successful in capitalising the green hydrogen, it can easily abate 400 million tonnes of CO2 by 2050.
Another opportunity in the clean energy comes from the transportation sector. After over a century of petroleum dominance, the sector is going through a radical transformation. New energy options comprising alternative fuel and electrification are at the forefront of this transformation. Most of the automobile OEMs across the globe are actively adapting to rapid advancement in technology, alternative fuels, automation and digital solutions that create new mobility options and new business models.
While the technologies and fuel that will move people and goods in the future remain uncertain, transportation systems will be more integrated with renewable energy, smart electric grids, smart buildings and information ecosystems, allowing for greater opportunities to leverage these interconnections. Thus, opening a plethora of opportunities for players in the EV eco-system- OEMs, battery manufacturers, charging infrastructure and others.
However, the success of energy transition hinges on balancing the demand requirements and reducing import dependency to ensure energy security. There is an urgent need to secure raw materials inflow for continuous manufacturing process. The COVID-19 challenges and its impact on global supply chain showed how dependency on a single country or region could jeopardize long-term plans of green economy.
Over the years, India has proven itself to be a reliable and strategic partner and can play a pivotal role in achieving resilient global supply-chain infrastructure. With a strong manufacturing capability, readymade market, and an eco-system to develop technology and inventor friendly policy powered by AatmaNirbhar Bharat, India is expected to emerge as a preferred manufacturing hub for the world.
With this backdrop, the Confederation of Indian Industry (CII), in association with the Ministry of New & Renewable Energy (MNRE), Government of India is organizing the 3rd edition of Aatmanirbhar Bharat in RE Manufacturing on 17 – 19 October 2022. The theme of the event is ‘Pathways for Global Partnership in Green Energy – Powering Aatmanirbhar Bharat & the World.’ Alongside, CII is hosting an exhibition showcasing manufacturing technologies and products in renewable energy sector.
This event is being organized on the side-lines of the Fifth General Assembly of the International Solar Alliance (ISA) General Assembly, wherein delegation from more than 109 member & signatory countries are participating.
Register for the event to know what global Government officials, industry leaders & renewable energy experts have to say on smooth transition to renewable energy.