Renewable energy adoption by India’s Commercial and Industrial (C&I) sector is experiencing rapid growth, with demand for clean energy solutions increasing significantly over the past two years.

This surge in adoption is driven by falling renewable energy costs and supportive policies in several states.

At the Mercom Indian Renewables Summit 2024, industry experts shared their insights on the current state of the market, challenges, and prospects for corporate renewable energy adoption in India at a session, ‘Industrial and Commercial Units Driving Green Energy Agenda.’

The C&I renewable energy market has seen remarkable expansion, nearly doubling in size over the last two years, Kiran Kumar Perka, Head of Open Access C&I at O2 Power, said that the demand is growing multifold, with companies exploring various renewable energy options.

Initially, the focus was primarily on solar energy, but the market has evolved to include hybrid wind-solar projects. The introduction of the Interstate Transmission System (ISTS) waiver has further expanded opportunities for consumers, allowing them to access renewable energy from resource-rich states.

Emerging Technologies and Solutions

The panel discussed how energy storage solutions are becoming increasingly viable for corporate renewable energy projects. Just a year ago, storage was not considered a feasible option, but recent advancements have made it more attractive to consumers.

The market is shifting towards hybrid projects, combining solar and wind power to provide a more consistent energy supply.

In this light, Amit Mittal, COO of Ampin Energy, emphasized the need for greater flexibility in hybrid projects to benefit consumers.

Cyriac Loyola, Customer Project Manager at SMA Solar India, highlighted the importance of developing future-proof platforms that integrate various energy sources easily. This approach allows for greater adaptability as business dynamics evolve. Open access policies have been a game-changer for the corporate renewable energy sector. States like Karnataka, Maharashtra, Gujarat, and Tamil Nadu have implemented conducive policies that have helped develop the OA segment.

Panelists called for a uniform open-access policy across states.

Mittal stressed that basic open-access guidelines should be consistent nationwide to simplify operations for developers and consumers.

Rajib Roy Choudhary, Head of Business Development at Candi Solar, emphasized the need for distribution companies (DISCOMs) to view distributed generation as an opportunity rather than a threat. Improved collaboration between DISCOMs and renewable energy developers is crucial for the sector’s growth.

Challenges and Opportunities

With ambitious targets for open-access renewable energy capacity, land availability has become a significant concern. The industry aspires to grow from 20 GW to 80 GW, requiring substantial land resources.

While supportive policies exist, their implementation on the ground remains a challenge. Perka called for a transparent, digital, and automated mechanism to streamline approval processes and other procedures.

Despite the growth in corporate renewable energy adoption, most industries have yet to embrace green power. Rajib Roy Choudhary estimated that only 0.5% of industries currently use hybrid power, indicating significant untapped potential in the market.