By Shashank Sharma
Introduction
The year 2019 was indeed a momentous occasion for India, as we declared an ambitious target of achieving an astounding 500GW of renewable energy capacity by 2030. What it meant was that India would meet half of its electricity needs from renewable energy sources by 2030, making it the world’s largest renewable energy expansion programme. This audacious move was just the stepping stone towards our transition into the clean energy space – India, today, stands as the fourth largest in renewable energy installed capacity, globally.
We, as a nation, are now well on our way to achieving these aspirational goals, while also setting an example for other countries to follow suit. As per the reports from the Power Ministry, India will see an increase in investments in renewable energy (RE) projects of more than 83%, reaching approximately $16.5 billion in 2024, as the government intently focuses on energy transition to our lower carbon emissions.
Why is it important to make the switch?
The stress that climate change is placing on current energy generation underscores the urgency of lowering emissions coming from fossil fuels. By shifting subsidies from fossil fuels to renewable energy, sustainable economic growth can be achieved. Furthermore, this dependency oftentimes results in geopolitical conflicts and reliance on foreign resources. Data shows that 80% of India’s industrial coal and 90% of its oil are currently imported from other countries. Reducing this reliance on non-renewable sources can greatly help our country to become more energy independent.
In a world where climate change is increasingly leaving a negative impact and energy consumption is exponentially rising, the switch to renewable energy becomes not a preferable choice to consider, rather a necessity to acknowledge. India’s energy demand is expected to rise exponentially in the years to come owing to the ginormous potential for development. It becomes imperative to meet such humongous energy requirements from low-carbon energy sources especially, as we aim on achieving net zero by 2070.
In the last 75 years, our country has grown in leaps and bounds in various sectors including technology, infrastructure, etc., and now it is time for our nation to showcase its prowess in the clean energy space. With the shift away from carbon-intensive strategies, our country is poised to set a new paradigm in economic development.
Indian businesses and corporations are responding to climate change
With the government encouraging the use of renewable energy sources, businesses are firmly committing to switch to low-carbon energy systems. In fact, modern-day businesses are making significant contributions to the conversation around green economy and are putting plans into place for a shift to a carbon-neutral economy. Our nation’s installed solar capacity has increased dramatically over the last five years, from 21,651 MW to 70,096 MW in 2023. With the help of programmes like the Production Linked Incentive (PLI) and other dedicated goals, India is on track to produce 500 GW of renewable energy by 2030.
As businesses continue to be a significant source of innovation for advancing the economy’s sustainable growth, they will continue to play a crucial role in the building of a sustainable ecosystem. Joining The Climate Group and CDP’s RE100 initiative, Infosys, Dalmia Cement, Mahindra Holidays & Resorts, and Tata Motors—four Indian-headquatered companies have voluntarily committed to consuming 100% renewable electricity. Furthermore, over forty global RE100 companies are present in India and are transitioning their operations to renewable energy sources.
In 2019, the number of companies that committed to RE100 increased threefold, reaching 232 in total. Of these, 3 out of 4 companies aim to achieve 100% renewable electricity using 2030 as their target year. One can observe a steady rise in climate commitments and action among Indian businesses.
A report by FICCI and Deloitte India predicts that by 2070, India’s energy consumption will surge to about 1200 Mtoe (millions tonnes of oil equivalent), which amounts to a doubling of the country’s final energy demand. The massive increase in energy needs in our country requires us to turn to renewable sources for climate protection as well as to achieve sustainable growth.
In fact, there is a need for high-power consuming companies to adopt decarbonisation solutions sooner. For these businesses, utilising clean energy sources can be particularly beneficial because it improves efficiency, reduces energy bills and allows them to avail green energy incentives.
Why must companies not overlook the ESG practices?
Sustainability and ESG are vital components of modern corporate strategies; they are no longer optional. Businesses with a forward-thinking approach to sustainability and ESG are more likely to succeed in the long run. They are more likely to survive as sustainable entities because they are adjusting to the changing needs of the world. Investors are increasingly looking to fund businesses that exhibit accountability and vision in the ESG space. In recent years, consumers have become more interested in products and services produced by socially and environmentally responsible companies.
Conclusion
By 2047, when India celebrates its 100th year of independence, we could potentially be energy independent, according to a study by the US Department of Energy’s Lawrence Berkeley National Laboratory. It also highlighted that the switch to electric vehicles could save imports of crude oil by over 90%, or $240 billion, while the use of green hydrogen and electrified industrial production would cut imports of industrial coal by 95%.
It is time for businesses to embrace the power of renewables and invest in sustainable solutions to drive a positive change. Our commitment to clean energy can help create a world where future generations can thrive.
The author is Founder – Chairman & CEO, at Sunsure Energy
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