India’s energy landscape is on the brink of a transformative shift, driven by the urgent need to address climate change, energy security, and economic growth.

The transition to renewable energy, supported by policy initiatives, technological advancements, and international collaboration, is an urgent national imperative.

With an ambitious target of 500 GW of non-fossil energy capacity by 2030 and a net-zero goal by 2070, India is positioning itself as a leading green energy market. This targeted large-scale renewable capacity addition presents significant opportunities for both domestic and global players to operate within a dynamic policy environment and evolving global supply chain.

The overarching issues relating to the Indian renewables sector were discussed on the first day of the two-day Mercom India Renewables Summit 2024, an exclusive event that is being held in New Delhi. The event started with a keynote by Raj Prabhu, CEO & Co-Founder at Mercom Capital Group, and Priya Sanjay, Managing Director, Mercom India.

“India aims to install 450 GW of renewable energy by 2030. Solar and wind energy targets are 280 GW and 140 GW by 2030. Additionally, India intends to install 30 GW of offshore wind power,” Sanjay noted.

Prabhu stated that the recent bidding trajectory has been a great initiative. If government agencies continue to exceed their targets and start mandating auctions through to power purchase agreements and power sale agreement signing, as a part of the trajectory, we will witness a significant increase in installations in the coming years.

Following the keynote, panelists at the session ‘Accelerating India’s Energy Transition: Urgency is the Driving Force’ had an engaging discussion on defining the shape and roadmap for India’s renewable energy future.

The session featured Sudeep Jain (IAS), Additional Secretary at the Ministry of New and Renewable Energy; R.P. Gupta, CMD of Solar Energy Corporation of India; Indra Chandra Prasad Keshari, Advisor – Infrastructure and Energy at Adani Green Energy; Sarit Maheshwari, CEO of NTPC Renewable Energy; and Raj Prabhu.

Sanjay moderated the session.

Pradeep Jain was emphatic in saying India would achieve the 500 GW goal. “The ministry is confident in achieving these targets due to the projects in the pipeline and innovative tenders. The energy transition involves adding renewable energy capacity and integrating it with stable energy sources like battery and pump storage to ensure continuous supply.”

He said the MNRE ministry has clear visibility on another 200 to 250 GW of capacity in the pipeline, with annual tenders expected to add between 70 and 75 GW. These include significant projects like round-the-clock, firm dispatchable renewable energy, and hybrid power projects, demonstrating the country’s robust planning and execution capabilities.

The panelists spoke of a mismatch between project tendering, auctioning, and commissioning. They also felt the need for a clear offtake policy.

The speakers also referred to macroeconomic and geopolitical issues affecting the global supply chain.

Gupta said renewable purchase obligation targets and pooling of tariffs would lead to better outcomes by ensuring that the power distribution companies from different states procure renewables at the same tariff.

He noted that there should be a methodology to measure the performance ratings of power project developers to incentivize them and ensure the timely completion of projects to keep high ratings.

Keshari noted that the government should consider extending the waiver of inter-state transmission system charges by another year and an exemption for open access and unsubsidized rooftop solar projects from the Approved List of Models and Manufacturers regulation. This would boost installations manifold.

Maheshwari highlighted the need for long-duration storage solutions for renewable energy, as low-cost batteries largely address short-term storage. “Seasonal variability in energy production is a significant challenge,” he noted.

He suggested that the industry develop cheaper, more efficient energy storage solutions for low renewable energy generation periods. He also advocated a plug-and-play model to help new developers set up projects efficiently.

The NTPC Renewable Energy CEO spoke of challenges arising from connectivity and high land prices. “The government must intervene and get us land … that will be a big help to REIAs (renewable energy implementing agencies).”

Maheshwari also noted that power distribution companies hesitate to sign PPA due to high tariffs. “This hesitation could worsen if these power distribution companies start considering the cost of operation and maintenance of the projects,” he said.

According to Maheshwari, the energy transition moving forward will be more complex due to the intermittent nature of renewable energy. The pace of the transition would depend on the tariffs of pumped and battery energy storage projects.