As Prime Minister Narendra Modi kicks off his third term in office after a thumping majority of the National Democratic Alliance (NDA), industry leaders expect a barrage of reforms to make India a renewable hub and economic power.
Amit Jain, CEO and Country Manager Engie, India anticipates the government to lay down a strategic framework that accelerates the transition to a low-carbon economy. “The government’s policy should encourage innovation in renewable technologies and provide support that attracts investments in solar power and other renewable sources. A regulatory landscape that simplifies the integration of renewables into the national grid, ensuring energy security and stability,” he said.
Jain added, that we further expect the government to foster public-private partnerships that can lead to the development of distributed energy infrastructure, thereby supporting the decarbonization efforts of clients and communities alike. The government’s role in educating the public about the benefits of renewable energy and promoting its adoption is also paramount.
Vikram V, Vice President & Co-Group Head-Corporate Ratings, ICRA said that Given the healthy growth in electricity demand, the Government must focus on scaling up the generation capacity addition as well as enhancing the transmission infrastructure, especially for evacuating power from renewable energy projects. This apart, the development of energy storage infrastructure remains another important area, to enable the integration of a growing share of renewables with the grid.
Further, there is a need to accelerate the reform measures in the power distribution segment including the smart metering initiative to achieve a sustainable improvement in DISCOM finances.
“To sustain India’s economic growth momentum, the government must advance reforms for key sectors including the clean energy sector by prioritizing renewables, investing in innovation and technology, and promoting public-private partnerships to build a better, generating more jobs, cleaner, and more sustainable India for generations to come. Introduce robust frameworks to address issues such as high capital and operational costs, through low-cost funding and risk-sharing facilities in the renewables sector,” said Mahesh Girdhar, Managing Director & CEO – EverEnviro Resource Management.
Mahesh further expects from the government to prioritize the development of robust pipeline infrastructure with simplification of the tax reforms. A framework for a grid system, like solar, would allow CBG production in one location and off-take in another, while maintaining the green properties of the molecule. The use of Fermented Organic Manure (FOM) will help boost soil health and regenerative agriculture. Such initiatives are vital for enhancing production and distribution, thus strengthening the overall sector. Additionally, take up the crucial task of increasing CBG induction in the renewable fuel landscape.
Pratik Agarwal, MD Sterlite Power and Chairman Serentica Renewables emphasized on the need for reforms in the power sector. “I hope this term focuses on achieving a comprehensive turnaround of DISCOMs. Many initiatives have been taken in the past to incrementally improve the situation, but we expect strong steps in this direction to ensure the sector's well-being. Pushing for full retail competition should be a focus. To maintain the momentum built in the last five years, it'll be paramount to extend the full Inter-State Transmission System (ISTS) waiver for another two years for sustaining RE adoption by all categories of power consumers,” he said.
Pratik added that while protectionism helps a certain segment, the government should open the sector to source the most competitive components globally, with a focus on the swift and cost-effective deployment of RE and transmission in the country. The next phase must also concentrate on preparing the country for large-scale RE integration. This will entail a strong policy push towards strengthening interconnectors with neighbouring nations, deploying extensive energy storage solutions, and exploring upcoming technologies like Small Modular Nuclear Reactors (SMRs) for a diversified energy mix.
"We anticipate that the newly formed government will continue its focus on RE with the same vigour and expect it will continue with the pace of renewable energy development. During this term we expect more focus on the Commercial and Industrial segments through open access based renewable energy projects by encouraging states to adopt the green energy open access rules and interpret it harmoniously for smooth implementation,” said Shriprakash Rai, Chief Revenue Officer (CRO) -Commercial & Industrial Business, AMPIN Energy Transition.
He added, Solar projects like third-party and captive which are not subsidized by the government should be kept out of the ambit of ALMM. The practice of imposing charges on the generation of power from open access-based renewable energy projects should be discouraged. The government should form a committee to deliberate on the accuracy of available forecasting tools and deviation charges for wind and solar-based projects.
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