Menu

Green Energy

Waaree Energies Surges Over 11% on FTSE Index Inclusion Buzz
Equities, Markets - January 30, 2025

India's Infrastructure Sector Calls for Policy Reforms to Boost Growth and Sustainability

India’s Infrastructure Sector Calls for Policy Reforms to Boost Growth and Sustainability

The companies in the infrastructure sector in India are demanding for reforms in areas such as tax relief for clean technologies, expansion in fund spending on infrastructures such as ports, roads, and railways, reforms in GST regulations, and encouraging skill development projects in order to enhance skills of employees in the construction and infrastructure sector. It also aims for promoting public-private partnerships in infrastructure projects.

Expectations of participants in infrastructure sector
The various market participants in the infrastructure sector from segments such as real estate, urban development, construction, and transportation strongly believe that the government of India needs to make changes in its fiscal and other policies in order to reduce pressure on infrastructural plans.

Managing Director of Interach Building Products, Arvind Nanda emphasized on the need for reduction in tax rates, especially for various projects using pre-engineered buildings (PEBs). Further he states that to reduce the cost incurred on projects, the government should increase input tax credit (ITC) benefits for PEBs. It will also help in adoption of environment friendly methods like PEBs and in turn will lead to development in the sector. He states that the government of India must increase investment in skill development schemes under its mission of Skill India to enhance the efficient workforce in the country’s construction sector.

These various reforms such as promotion of green energy, skill development and tax relief will encourage participation of the private sector. It will also help India to achieve its target of sustainability as promotion of green energy will encourage investment and private companies to adopt this technology.

The efficient and fair use of capex in the infrastructure sector in different states of India will help to encourage stable growth in the country. Partner at Grant Thornton Bharat, Vivek Iyer states that the government of India can distribute its funds according to the specific needs of the particular states. It will ensure implementation of financial regulations and policies in line with promoting long-term development in the infrastructure sector of India.

The capex scheme for states with an interest free loan for the duration of 50 years will help to encourage stable growth in different states in the country and in turn will lead to progress of India.

Partner at JSA Advocates and Solicitors, Ashish Suman expects expansion of capital financing in infrastructure such as ports, roads, and highways for development of the transportation sector in India. In order to encourage investment by the private sector and to develop infrastructure in India, there must be expansion in capital spending on the road segment to about 10 percent and also promote undertaking of Build-Operate-Transfer (BOT) projects.

To encourage investment in small cities (Tier 2 and 3), it is important to strengthen public-private partnerships (PPPs) projects. Suman further states that investment challenges in PPP are observed in the development of urban infrastructure. To address these issues, the government can focus on efficient use of the fund provided by the Urban Infrastructure Development Fund. It should focus on building a strong municipal bonds market which will help in resolving the issues of urban local governments who require money for financing in infrastructure projects.

Leader for India & Subcon at LWT IMEA, Priya Rustogi stated that India is anticipated to record a growth in GDP by 6.5 percent. Along with urbanisation, India can emphasize on building affordable housing and development of infrastructure of the country. This will result in expansion in demand for new, eco-friendly and good-quality bathroom related goods. She further added that the government of India should do reforms in GST implemented on sanitaryware. It should also focus on encouraging eco-friendly construction methods in order to achieve milestones of conserving the environment.

In case of progress in decorative and industrial paints, the Director of Shalimar Paints, Kuldip Raina stated that reforms in regulations are needed to have efficient supply of raw materials, incentives for advancement in technologies and tax relief to boost Research and Development in the sector. It will help in lowering energy and production costs, and also encourage more players to come in the industry.

The image added is for representation purposes only

Renewable Energy Sector Awaits Budget 2025 for Key Support Measures

, , , 0 Comment
Read More
BluPine Energy Secures ₹2,416 Cr to Build Hybrid Clean Power Project in Karnataka
Equities, Markets - January 30, 2025

Renewable Energy Sector Awaits Budget 2025 for Key Support Measures

Renewable Energy Sector Awaits Budget 2025 for Key Support Measures

Overview
The renewable energy sector anticipates that Finance Minister Nirmala Sitharaman would announce more steps to encourage the production of local equipment, policies to encourage the adoption of green technologies, increased funding for renewables, and a duty differential to assist domestic companies.

Over the past two years, the fiscal support for the renewable energy sector has more than doubled. Compared to the revised budget estimate of ₹7,848 crore for FY 2023-24, the Ministry of New and Renewable Energy’s (MNRE) total allocation for FY 2024-25 climbed to ₹19,100 crore.

As India strives to reach 500 GW of green energy capacity by 2030, the Union Budget 2025–26, which will be unveiled on February 1, is anticipated to include a number of incentives for the renewable energy industry. The renewable energy sector in India is optimistic that the next Union Budget will provide a path for the fossil fuel-dependent economy to increase its green energy capacity in multiple ways, given recent geopolitical developments such as China’s export restrictions and the United States’ tougher sanctions on Russian oil.

Large budget allocation through PLI Schemes
Green energy stakeholders want a stronger domestic push, whether it is for output, storage capacity, new production-linked incentive (PLI) schemes with larger budget allocations for areas like battery infrastructure, or research and development promotion. This is especially important at a time when India may find it difficult to meet its 2030 target of 500 GW from non-fossil fuel sources.

According to Subburathinam P, Chief Operating Officer of TeamLease Services, many businesses in these industries are still in the pre-production or incubation stage. It is crucial that they enter the production stage in order to benefit from PLIs in the renewable energy industry. The industry anticipates a drive toward battery storage, which is essential for integrating renewable energy and guaranteeing a steady power supply.

Industry participants look for ways to solve implementation issues and encourage domestic production in new and developing renewable technology areas. To reduce reliance on imports, primarily from China, the government may propose support measures for the domestic battery manufacturing and supply chain.

PSUs in action
In order to meet the 2030 target and become Net Zero by 2070, more steps are anticipated to increase the involvement of corporate and public sector undertakings (PSUs) in the green energy transition. Given that these technologies have large capital expenditures and a ten to fifteen-year time horizon, a significant rise in resource allocation is anticipated for the adoption of renewable energy, the integration of green technologies, and waste reduction.

Solar Cells to be supported by incentives
Observers of the green energy sector believe that more incentives to support domestic production of solar cells and green hydrogen would be included in the Union Budget 2025. In order to increase research and development (R&D) activities in the industry and draw in foreign money, supporting measures can be proposed.

As the nation seeks to diversify its renewable energy portfolio, larger solar and offshore wind projects are probably going to receive larger budgetary allocations. In a similar vein, increased funding is anticipated for carbon markets, green hydrogen production, and future technologies.

Support for minerals
The government may focus on critical minerals such as lithium, copper, cobalt, and rare earth materials, which are vital for sectors like nuclear energy, renewable energy, space, defence, telecommunications, and high-tech electronics.

In the last budget, the government fully exempted customs duties on 25 critical minerals and reduced basic customs duties (BCD) on two of them to boost the processing and refining of such minerals. Any further friendly measures in this direction will ensure the easy availability of such critical minerals for renewable energy players.

Boosting the Green Sector
In order to encourage the public to embrace green energy, the government introduced legislative initiatives like the PM Surya Ghar Muft Bijli Yojana in the most recent Budget. In order to provide free electricity to one crore families, up to 300 units per month, the Yojana was started to install rooftop solar plants.

Last year, the increase of energy capacity in the renewable energy industry significantly improved. In the calendar year 2024, 27 GW of renewable energy capacity was added. In November 2024, the total installed non-fossil fuel capacity was 214 GW, a 14% increase over the 187.05 GW recorded during the same period the previous year. Of this, 47.96 GW came from wind energy and 94.17 GW from solar energy.

Ahead of the Union Budget 2025, pressure has continued to mount on leading renewable energy equities. Compared to their closing price on the NSE on January 1, the shares of major industry companies, including Waaree Energies, KPI Green Energy, NTPC Green, and Adani Green Energy, have dropped by as much as 60% since the start of the month.

The image added is for representation purposes only

India’s export in auto industry reach 19 percent

, , , 0 Comment
Read More
IREDA Q3FY25: Robust Loan Growth, Improved Asset Quality YoY, PAT Up 27%
Business, Equities, Market News, Markets - December 31, 2024

Accelerated Growth in India’s Renewable Energy Capacity in 2024

Accelerated Growth in India’s Renewable Energy Capacity in 2024

India’s renewable energy sector is witnessing a remarkable acceleration in capacity additions, with 14,907 megawatts (MW) of new renewable energy generation capacity added between April and November 2024. This is nearly double the amount of capacity added during the same period in 2023. The rapid increase in renewable energy installations is a clear indicator of the industry’s ability to capitalize on favorable market conditions and policy incentives, positioning India to achieve its renewable energy goals ahead of schedule.

Key Drivers Behind the Surge in Renewable Energy Additions
Several factors have contributed to this surge in capacity additions, making 2024 a particularly strong year for the renewable energy sector in India.

1. Large Project Pipeline and Favorable Market Conditions
A significant portion of the recent growth can be attributed to a robust pipeline of renewable energy projects. According to industry reports, around 240 GW of renewable energy projects are currently in the tendering stage, creating a substantial backlog for developers. This large volume of projects provides a clear signal that India’s renewable energy market is expanding rapidly.

Additionally, the declining prices of solar modules have played a pivotal role in accelerating project installations. Solar module prices have softened in recent months, thanks to improved manufacturing capabilities and global supply chain efficiencies. This has made renewable energy projects more economically viable, encouraging developers to fast-track installations to capitalize on these favorable cost conditions.

2. Policy Support and Incentives
Government policies have also been a major driver of growth. One of the most significant incentives provided by the Indian government is the waiver of interstate transmission charges for renewable energy projects commissioned before June 2025. This policy helps reduce the overall cost of project development, making it more attractive for developers to invest in new renewable energy projects.

In addition to this, India’s commitment to achieving its renewable energy target of 500 GW by 2030 has led to several initiatives designed to promote green energy investments. The government has rolled out a number of schemes that include financial incentives, subsidies, and accelerated project approval processes. These efforts, combined with supportive regulatory frameworks, have created an environment that encourages rapid growth in the renewable energy sector.

3. Demand from Industrial and Commercial Users
Another important factor driving the surge in renewable energy installations is the increasing demand from industrial and commercial users. As businesses and corporations set ambitious sustainability goals, there has been a significant shift toward securing renewable energy sources to meet their growing energy needs.

In particular, the private sector is playing a key role in this transition. Many large corporations are actively seeking renewable power to meet their Environmental, Social, and Governance (ESG) targets and reduce their carbon footprints. As a result, developers are facing growing demand from these sectors, which in turn is helping to accelerate the pace of project installations.

Industrial and commercial users are not only looking for cost-effective renewable energy solutions but are also keen to lock in long-term power purchase agreements (PPAs) that ensure stable pricing and reduce exposure to fluctuations in conventional energy prices. This demand is helping to drive the development of new renewable energy infrastructure, contributing significantly to the overall growth of the sector.

Future Outlook: India’s Renewable Energy Sector to Outpace Previous Records
If the current pace of capacity additions continues, India is on track to exceed previous annual highs in renewable energy project installations. The country’s renewable energy capacity base is set to rise significantly over the next few years, helping India move closer to its 2030 target. The consistent growth in renewable energy installations will likely lead to increased investment in the sector, as both domestic and international investors continue to recognize the long-term potential of India’s renewable energy market.

The government’s continued focus on expanding the renewable energy infrastructure, coupled with the incentives and favorable market conditions, will play a crucial role in driving further capacity additions. With the combined efforts of developers, policymakers, and the private sector, India’s renewable energy sector is poised for continued growth.

Implications for the Supply Chain and Related Sectors
As India continues to scale up its renewable energy capacity, the supply chain that supports the sector will also benefit. The demand for components such as solar modules, wind turbines, and batteries is expected to rise, creating significant opportunities for companies in the manufacturing and supply chain space.

Additionally, the increased demand for Engineering, Procurement, and Construction (EPC) services will help boost companies in this domain. EPC contractors, who are responsible for the design, construction, and commissioning of renewable energy projects, will see heightened activity as more projects are awarded and come online.

Companies involved in the production and supply of renewable energy components, as well as those providing EPC services, are likely to experience growth as the renewable energy capacity base in India expands. This will provide a positive feedback loop, where the growth of the renewable energy sector fuels the expansion of the supply chain and vice versa.

Conclusion: A Positive Growth Trajectory for India’s Renewable Energy Sector
India’s renewable energy sector is experiencing an unprecedented acceleration in capacity additions, driven by a combination of favorable market conditions, government incentives, and strong demand from industrial and commercial users. The surge in capacity additions and project awards points to a robust future for the sector, with the potential to exceed previous records and achieve India’s renewable energy targets well ahead of schedule.

This growth not only supports India’s transition to cleaner energy but also presents significant opportunities for companies involved in the renewable energy supply chain. As the government continues to push for increased investments in green energy, the renewable energy sector is poised to remain a key pillar of India’s energy landscape for years to come.

The image added is for representation purposes only

TCS Unveils Pace Studio in Philippines to Boost Digital Innovation

, , 0 Comment
Read More