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Green Ambitions, Trade Concerns: India's COP29 Roadmap
Business, Equities, Market News, Markets - September 18, 2024

Green Dreams, Grey Reality: 30 GW Faces Hurdles in India

Green Dreams, Grey Reality: 30 GW Faces Hurdles in India

India’s renewable energy sector, despite its rapid expansion and ambitious targets, is currently facing significant hurdles in selling nearly 30 gigawatts (GW) of green power capacity. This challenge stems from the complexities involved in finalizing agreements for power purchase and supply amidst a landscape of inconsistent tariffs and grid connectivity issues. The situation has become more pronounced as stakeholders await the implementation of uniform tariffs and improvements in grid infrastructure.

According to sources familiar with the matter, approximately 15 GW of renewable energy capacity is yet to secure power purchase agreements (PPAs). Additionally, another 14 GW is waiting for power supply agreements (PSAs) to be finalized. In the renewable energy supply chain, power developers usually enter into PPAs with power procurers such as state-run entities like the Solar Energy Corporation of India (SECI), NTPC Ltd, and SJVN Ltd.. The delay in finalizing these agreements not only affects the operational viability of these projects but also creates bottlenecks in achieving broader policy goals for renewable energy expansion in India.

The challenge is particularly pronounced for older renewable projects, especially those focused on solar energy. As reported, projects developed more than a year ago are finding it increasingly difficult to attract buyers. This situation is partly because projects that were developed recently have already managed to finalize their agreements, thereby securing their place in the market. In contrast, older projects are becoming less attractive due to a variety of factors, including declining technology costs and increasing competition from newer projects that can offer power at lower tariffs.

India’s renewable energy landscape has been evolving rapidly, with the government setting ambitious targets to expand green energy capacity. The country aims to tender up to 50 GW of renewable power projects each year until FY28. Prime Minister Narendra Modi reaffirmed this commitment on August 15, underscoring India’s intention to lead in renewable energy production globally. However, the aggressive push to expand renewable capacity has coincided with a slowdown in signing necessary agreements, creating a surplus of unsold capacity in the market.

The situation has been exacerbated by the trend of continuously falling tariffs in the renewable energy sector. Projects with lower tariffs keep entering the market, making power generated from older projects, which may have been developed at a time of higher capital costs and less favorable tariffs, increasingly unattractive to potential buyers. This creates a market paradox where, despite the surge in green power generation capacity, the demand does not match the supply at current pricing levels.

This market oversupply comes at a time when India is aggressively tendering new projects, aiming for significant annual increments in green energy capacity. According to data from JMK Research, there is a substantial amount of capacity bid out each year. However, the accumulation of unsold capacity raises questions about the sustainability of the current approach. If agreements are not finalized in a timely manner, it could deter investors and developers from participating in future tenders, potentially derailing India’s renewable energy goals.

Furthermore, regulatory and policy uncertainties, particularly regarding the implementation of uniform tariffs, continue to be a significant concern for stakeholders. While the industry has been advocating for more consistent and predictable policies, there has been little movement from the government on this front. Queries sent to the Union Ministry of New and Renewable Energy and SECI remain unanswered, reflecting a gap in communication and coordination that could further dampen investor sentiment.

On one hand, there is tremendous potential for growth, backed by government support and an increasing global focus on sustainable energy. On the other hand, market and regulatory challenges need to be addressed urgently to prevent a backlog of unsold capacity, ensure investor confidence, and align market dynamics with policy ambitions. The next few years will be crucial in determining whether India can achieve its renewable energy goals and emerge as a global leader in green energy or whether these systemic challenges will lead to a slowdown in progress.

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Shriram Finance Targets $1.5 Billion in Overseas Funding

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IREDA Announces Up to Rs 4,500 Crore Equity Capital Raise
Business, Equities, Market News, Markets - September 13, 2024

IREDA Announces Up to Rs 4,500 Crore Equity Capital Raise

IREDA Announces Up to Rs 4,500 Crore Equity Capital Raise

IREDA, a leading public sector green financier, plans to raise up to Rs 4,500 crore in equity capital to support India’s renewable energy goals. This decision was made during a meeting of IREDA’s Board of Directors held on August 29, 2024, as the company seeks to bolster its financial capabilities and support India’s ambitious renewable energy goals.

As a mini-Ratna company under the administrative control of the Ministry of New and Renewable Energy, IREDA has played a crucial role in financing green energy projects across the country. The funds raised through this equity capital infusion will be used to expand IREDA’s on-lending activities, enabling it to provide financial support to a broader range of renewable energy projects, from inception to post-completion.

The planned fundraising will be executed in one or more tranches, utilizing various methods such as a Further Public Offer (FPO), Qualified Institutional Placement (QIP), Rights Issue, Preferential Issue, or other permitted modes. The exact number of securities to be issued will be determined at a later stage, based on market conditions and the company’s funding requirements.

IREDA’s decision to explore diverse funding avenues, including public and institutional channels, demonstrates its commitment to diversifying its sources of capital. This strategic move will not only strengthen the company’s financial position but also enable it to cater to the evolving needs of the renewable energy sector in India.

The proposed fundraising initiative requires approval from the Government of India and other relevant regulatory authorities. This process is crucial, as the additional capital will play a pivotal role in supporting India’s ambitious renewable energy targets. The country aims to achieve 500 GW of renewable energy capacity by 2030, which requires an annual addition of approximately 50 GW to the existing infrastructure.

IREDA’s financial performance in the recent past has been commendable, further underscoring the need for this capital infusion. During the June quarter of 2024, the company saw a significant boost in its financial performance, with a 30% surge in net profit reaching Rs 384 crore, accompanied by a 32% year-over-year increase in revenue, which stood at Rs 1,502 crore. This robust financial standing has inspired the company’s leadership to seek additional resources to fuel its continued growth and contribute to the nation’s renewable energy aspirations.

The Indian government’s focus on renewable energy, as evidenced by policies such as the National Renewable Energy Policy and the National Solar Mission, has been a driving force behind the sector’s expansion. IREDA’s role as a leading financier in this space has been instrumental in facilitating the implementation of these policies and supporting India’s transition towards a more sustainable energy future.

The proposed fundraising by IREDA is expected to have a positive impact on the renewable energy industry in India. By providing access to additional capital, IREDA will be able to expand its lending activities and support a greater number of projects across the country. This, in turn, will contribute to the overall growth and development of the renewable energy sector, helping India progress towards its ambitious targets and reduce its reliance on fossil fuels.

Furthermore, this strategic move aligns with the global efforts to combat climate change, as the increased funding for renewable energy projects will play a crucial role in reducing greenhouse gas emissions and promoting a more environmentally sustainable energy landscape.

Overall, IREDA’s decision to raise equity capital of up to Rs 4,500 crore is a significant development that underscores the company’s commitment to supporting India’s renewable energy ambitions. By diversifying its funding sources and strengthening its financial capabilities, IREDA is poised to play an even more pivotal role in driving the country’s transition towards a greener and more sustainable energy future.

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Maruti Suzuki’s new facility faces short delay; 2025-26 production kick-off

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India's Rooftop Solar Capacity Rises 26% to 1.1GW in H1 2024
Business, Equities, Market News, Markets - September 6, 2024

India's Solar Growth Meets Supply Chain Challenges

India’s Solar Growth Meets Supply Chain Challenges

India’s ambitious push towards renewable energy, particularly in the solar sector, is facing significant challenges that threaten to impede its progress. At the Mint Sustainability Summit 2024, industry leaders highlighted the complex issues confronting the sector, primarily centered around supply chain disruptions and policy instability.

Over the past few years, the solar industry in India has grappled with severe supply chain constraints, exacerbated by frequent policy changes. A period of uncertainty and instability is being faced by the solar industry. While the government’s Production Linked Incentive (PLI) program provides some assistance, it hasn’t been sufficient to make the sector fully self-reliant, according to Manikkan S, who leads Radiance Renewable as executive director and chief executive. The shift towards domestic production has been uneven, with supply challenges continuing even as Indian manufacturers increase their output.

The supply chain disruptions are particularly acute in the production of solar cells and modules, critical components of solar energy systems. Sujoy Ghosh, vice president and country managing director for India at First Solar, pointed out that uncertainty in government directives has led to setbacks in solar cell production timelines. He estimated a delay of 18 to 24 months, projecting that self-sufficiency in meeting cell demand might not be achieved until March 2025. This delay is crucial, as any disruption in solar cell supply can have far-reaching effects across the entire value chain.

Financial sustainability presents another formidable challenge for the solar industry. Despite rapid adoption of solar energy in India, the current tariff structure is inadequate to cover full production costs.

Energy expert Rahul Tongia points out that current tariffs don’t accurately represent true production expenses. He suggests a need to rethink the grid infrastructure, arguing that distribution companies aren’t adequately addressing all the challenges in the sector. This highlights the complex issues facing the energy industry beyond just production costs.

The grid infrastructure itself is struggling to keep pace with the increasing load from solar energy, a situation exacerbated by the growing adoption of electric vehicles and other renewable sources. This mismatch between production costs and tariffs is further strained by the financial difficulties faced by distribution companies. Tongia warned that without a robust financial model, the expansion of solar energy in India could be at risk, potentially jeopardizing the country’s renewable energy targets.

Nimbargi advocated for a hybrid approach to energy generation, suggesting a combination of solar with other renewable sources like wind to ensure a balanced energy mix. He emphasized that while solar energy has a significant impact, especially in rooftop installations, the overall energy transmission system needs to incorporate a mix of solar and other sources for optimal efficiency and reliability.

The optimism in the sector is tempered by the realization that achieving India’s ambitious renewable energy targets will require time and sustained effort. He views decarbonization and the shift to net-zero emissions as certain outcomes, but notes that the main challenge lies in determining how long these transitions will take.

As India continues its push towards renewable energy, the solar sector finds itself at a critical juncture. The challenges of supply chain disruptions, policy instability, and financial sustainability are testing the industry’s resilience. However, continued investor interest and government support provide a glimmer of hope. The success of India’s solar energy ambitions will depend on effectively addressing these challenges, ensuring a stable policy environment, strengthening the supply chain, and developing a sustainable financial model for the sector.

The path forward for India’s solar industry will require a delicate balance of government support, private sector innovation, and strategic planning. Addressing supply chain issues through domestic manufacturing capabilities, streamlining policies to provide a stable regulatory environment, and developing innovative financing models will be crucial. Additionally, investing in grid infrastructure to accommodate the growing share of renewable energy and adopting a diversified approach to energy generation will be essential for long-term sustainability.

As India navigates these challenges, the global implications of its renewable energy transition cannot be overstated. As one of the world’s largest energy consumers and greenhouse gas emitters, India’s success in scaling up its solar capacity will have significant impacts on global climate goals. The country’s journey in overcoming these obstacles and realizing its solar energy potential will not only shape its own energy future but also serve as a model for other developing nations grappling with similar challenges in their transition to clean energy.

In conclusion, while India’s solar sector faces substantial hurdles, it also presents immense opportunities. The country’s ability to address supply chain issues, stabilize policies, improve financial models, and upgrade infrastructure will be critical in determining the success of its renewable energy transition.

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Sugar Industry Fears New Norms May Stifle Growth and Innovation

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India's Rooftop Solar Capacity Rises 26% to 1.1GW in H1 2024
Business, Equities, Market News, Markets - August 30, 2024

JSW Neo Energy Expands Renewable Capacity with 200 MW Hybrid Project

JSW Neo Energy Expands Renewable Capacity with 200 MW Hybrid Project

JSW Neo Energy Limited has been awarded a 200 MW wind-solar hybrid power project by the Maharashtra State Electricity Distribution Company Ltd. (MSEDCL). This project, part of MSEDCL’s Phase III initiative, was secured through a competitive tariff-based bidding process. It marks a significant enhancement to JSW Neo Energy’s renewable energy portfolio and aligns with India’s broader green energy objectives.

The 200 MW Wind-Solar Hybrid Power Project will harness both wind and solar energy resources, leveraging their complementary nature. Wind energy will be utilized during evenings and nights, while solar power will be captured during the day. This dual approach ensures a more reliable and continuous energy supply, improving efficiency and power generation reliability.

With the addition of this 200 MW project, JSW Neo Energy’s total generation capacity now reaches 17.2 GW. The company’s hybrid generation capacity has also expanded to 2.9 GW, underscoring its strategic focus on hybrid renewable projects. The total capacity is diversified across wind, solar, thermal, and hydro sources.

Of the 17.2 GW, 7.5 GW have already been commissioned, and another 2.3 GW are under development in wind, thermal, and hydro projects. Additionally, JSW Neo Energy has secured approvals for power purchase agreements for an extra 2.3 GW of renewable projects. This expansion supports the company’s goal of increasing its installed generation capacity to 20 GW by 2030.

JSW Neo Energy aims to achieve 10 GW of installed generation capacity by FY25, up from the current 7.5 GW. The new 200 MW wind-solar hybrid project is crucial to reaching this target. The company’s growth in the renewable sector reflects its commitment to sustainable energy solutions and its strategic shift towards becoming a diversified, integrated energy products and services provider.

In tandem with expanding its renewable generation capacity, JSW Neo Energy is making strides in energy storage. The company has increased its energy storage capacity ninefold to 4.2 GWh through battery energy storage systems and hydro-pumped storage projects. These storage solutions are vital for balancing renewable energy supply and ensuring a stable power supply.

By 2030, JSW Neo Energy plans to expand its energy storage capacity to 40 GWh, positioning itself as a leading provider of energy storage solutions in India. This focus on storage will help balance supply and demand as the nation grows its reliance on renewable energy.

The integration of wind and solar energy with battery storage represents a significant technological advancement in energy diversification. This project will facilitate more efficient and reliable electricity production at a lower cost compared to traditional methods. Combining these green energy sources optimizes land and infrastructure use, further reducing carbon emissions associated with power generation.

The wind-solar hybrid project will contribute to lowering greenhouse gas emissions and supports India’s national emissions reduction targets.

JSW Neo Energy is committed to achieving carbon neutrality by 2050. The restructuring of its power generation with hybrid renewable projects is integral to reducing the company’s carbon footprint. The expansion of renewable energy and innovative storage capacities are key components of JSW Neo Energy’s strategy to reach carbon neutrality and contribute to India’s green energy transition.

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Sugar Industry Fears New Norms May Stifle Growth and Innovation

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India Hits Record 15 GW Solar Capacity in H1 2024
Business, Equities, Market News, Markets - August 28, 2024

India Hits Record 15 GW Solar Capacity in H1 2024

India Hits Record 15 GW Solar Capacity in H1 2024

India’s renewable energy sector has witnessed a remarkable surge in the first half of 2024, with the country adding a record 15 gigawatts (GW) of solar capacity between January and June. This milestone underscores India’s commitment to accelerating its transition towards a sustainable energy future and highlights the growing importance of solar power in the nation’s energy mix.

India has been progressively working towards expanding its renewable energy capacity over the past decade, with a strong focus on solar power. The country has ideal conditions for solar energy generation, including abundant sunshine, vast land availability, and a growing demand for electricity. These factors have made solar power a key pillar of India’s renewable energy strategy.

The addition of 15 GW of solar capacity in just six months is a testament to India’s aggressive push towards achieving its renewable energy targets. This new capacity marks a significant increase compared to the 10 GW added during the same period in 2023, reflecting a year-over-year growth rate of 50%. The rapid growth in solar installations can be attributed to a combination of favorable government policies, technological advancements, and increased private sector investment.

The Indian government has been proactive in promoting renewable energy, especially solar power, through various policy measures. Initiatives such as the National Solar Mission, which aims to achieve 100 GW of solar capacity by 2022, and the extension of this target to 280 GW by 2030, have created a robust framework for the sector’s growth. Additionally, the implementation of favorable policies, including subsidies, tax incentives, and low-cost financing options, has made solar power more accessible and attractive to investors and developers.

Innovations in technology have brought down the price of solar panels and related equipment considerably. In India, the cost of producing solar electricity has decreased by more than 80% in the last ten years, making it one of the most economical energy sources available. Both smaller-scale residential and commercial installations and large-scale utility projects have used solar power more frequently as a result of the falling prices.

The private sector has played a crucial role in the expansion of India’s solar capacity. Major domestic and international companies have invested heavily in solar projects, attracted by the sector’s growth potential and supportive regulatory environment. Public-private partnerships have also been instrumental in driving large-scale solar installations, particularly in states like Rajasthan, Gujarat, and Maharashtra, which have abundant solar resources and supportive state policies.

India has seen a remarkable increase in solar capacity; however, maintaining this pace would not be easy given various obstacles. One of the primary challenges is the availability of land for large-scale solar projects. While India has vast land resources, acquiring suitable land for solar installations can be a complex and time-consuming process, often involving regulatory hurdles and local community resistance.

The national grid’s incorporation of solar electricity presents another difficulty. Due to its intrinsic variability, which is influenced by the weather and time of day, solar energy can cause problems with grid stability. In order to secure the dependable and effective integration of solar power, India must make investments in energy storage technology, smart grid infrastructure, and grid infrastructure enhancements.

The solar manufacturing sector in India needs to be strengthened to reduce dependence on imports of solar panels and other components. Although the government has introduced initiatives to boost domestic manufacturing, such as the Production Linked Incentive (PLI) scheme, more efforts are needed to build a competitive and self-sufficient solar manufacturing ecosystem.

In Summary, India’s addition of 15 GW of solar capacity in the first half of 2024 is a landmark achievement in its renewable energy journey. This record growth not only reinforces India’s commitment to combating climate change and reducing its carbon footprint but also sets a positive example for other nations to follow. However, to maintain this growth trajectory, India must address the challenges of land acquisition, grid integration, and domestic manufacturing. With continued government support, technological advancements, and increased private sector participation, India is well-positioned to achieve its renewable energy ambitions and pave the way for a sustainable future.

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Sugar Industry Fears New Norms May Stifle Growth and Innovation

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IREDA Announces Up to Rs 4,500 Crore Equity Capital Raise
Research, Research Reports, Result Updates - August 20, 2024

IREDA Q1FY25 Sees Record Loan Disbursement of ₹25,089 Crore

IREDA Q1FY25 Sees Record Loan Disbursement of ₹25,089 Crore

Company Overview:

Indian Renewable Energy Development Agency Ltd (IREDA) is an Indian public sector company that provides financial backing and additional assistance for projects related to renewable energy sources, energy efficiency, and conservation. Established in 1987, IREDA is a Navratna institution under the administrative jurisdiction of the Ministry of New and Renewable Energy, owned by the Indian government. IREDA was listed on the NSE and BSE following its initial public offering (IPO) in November 2023.

IREDA, a public limited company under government ownership and a non-banking financial institution, is committed to the development, encouragement, and funding of projects related to energy efficiency, conservation, and new and renewable energy sources. The company holds the status of a Mini Ratna (Category I).

Industry Overview & Growth Drivers:

India’s Green Financing Scenario: According to the International Renewable Energy Agency’s (IRENA) 2023 global ranking, India ranks fourth in the world for installed capacity of renewable energy, fourth for installed capacity of wind power, and fifth for installed capacity of solar power.

Bidding activity in other renewable energy sectors also increased in FY24:

  • The Government of India secured contracts for approximately 412,000 MTPA of green hydrogen production, with a 30-month timeline for commissioning.
  • Production of electrolysers: Under the Strategic Interventions for Green Hydrogen Transition Scheme (Tranche-I), a production capacity of approximately 1,500 MW was granted.
  • Solar PV production: Under the Solar PLI Scheme (Tranche II), letters of award were issued for 39,600 MW of fully and partially integrated solar PV module manufacturing plants.
  • Battery production: Under the Advanced Cell Chemistry PLI Scheme, a request for proposals was issued for a 10 GWh production capacity, which was later approved in April 2024.

Key Drivers for Growth in Solar and Wind Segments:

  • The budget for grid-based solar power projects in 2024–2025 is ₹10,000 crore, compared to ~₹4,757 crore in 2023–24, according to updated estimates.
  • In 2024–25, wind power was allocated ~₹930 crore, compared to ~₹916 crore in 2023–24.
  • Utility-scale solar and onshore wind: 50 GW of yearly bids for utility-scale solar and onshore wind have been planned, with allocations distributed among SECI, NTPC, NHPC, and SJVN, and a minimum of 10 GW of wind capacity announced for the period of 2023–2028.
  • Additionally, 50 solar parks with a combined capacity of more than 37,490 MW have been approved by the MNRE across 12 states, with about 10,401 MW of that power already put into service.

Hydropower: Depending on their scale, hydropower projects are categorized as large or small. In India, hydropower facilities with a capacity of 25 MW or less are classified as small hydro projects and fall under the purview of renewable energy. Following a government notification in 2019, large hydropower projects (>25 MW) have also been classified under renewables.

Important government initiatives promoting growth include:

  • Budgetary Focus: Aggregation machinery will help meet the mandate to combine CBG with piped gas and CNG, reducing the cost of LNG imports and enabling greenfield capacity development.
  • PLI for Manufacturing of High-Efficiency Solar Modules & Electric-Mobility Promotion Scheme 2024 (EMPS 2024)
  • Waiver of Interstate Transmission System (ISTS) charges for solar PV manufacturing capacity
  • ₹564.75 crore allocated under the scheme from FY 2023–2024 to FY 2026–2027.

Q1FY25 Quarterly Results:

  • The company’s highest-ever disbursement of ~₹25,089 crore in FY24 led to an incremental rise in its loan book to ~₹59,698 crore at the end of FY24.
  • Interest on loans increased by 44.84% in FY24 compared to FY23, contributing to the 42.56% increase in total income in FY24 over FY23.
  • Finance costs rose by 51.51% over FY23, primarily due to higher borrowing to meet the increasing demand for lending operations.
  • Interest expenses on borrowings increased by 70.59% due to additional funding raised through term loans from banks and other financial institutions at attractive domestic market rates.
  • Loans increased by 27.14% in FY24, mainly due to an increase in net disbursement.
  • The company achieved an all-time high PAT of ~₹1,252.23 crore and increased its net worth to ~₹8,559.43 crore in FY23.
  • The company’s capital adequacy is well within RBI guidelines, with a CRAR of 20.11% compared to the minimum allowable floor of 15%.
  • The debt-to-equity ratio decreased to 5.80 times in FY24 from 6.77 times in FY23 due to a new stock issue and retained earnings that were greater than the debt increase at the end of the fiscal year.
  • Operating profit margin grew by 3.76% in FY24 to 32.92% from 32.69% in FY23, driven by an improvement in net margin due to higher interest income.
  • The net profit margin increased from 24.82% in FY23 to 25.22% in FY24, primarily due to a 1.61% increase in the interest income margin.

Sanctions and Disbursements:

  • A 14.63% rise was observed over the ~₹32,586.60 crore sanctioned in the previous year. During FY24, loans totaling ~₹25,089.04 crore were disbursed, marking a 15.94% increase over the ~₹21,639.21 crore disbursed in the previous year.

Loan Book and Disbursement:

  • During FY24, loans disbursed reached ~₹25,089.04 crore, a 15.94% increase from ~₹21,639.21 crore the previous year. This marks the largest yearly payout in the company’s history.
  • The company’s loan book increased by 26.81% from ~₹47,075.52 crore as of March 31, 2023, to ~₹59,698.11 crore as of March 31, 2024.

Key Financial Ratios:

Ratios 30, June 2024 31, Mar 2024 30, June 2024
Rate of Return on Loan Assets% 10.01%

 

 9.97%

 

 9.64

 
Percentage charged for borrowings % 7.78%

 

 7.81%

 

 7.83%

 
Spread of Interest% 2.23% 2.16% 1.81%
Margin of Net Interest (%) 3.29

 

 2.85%

 

 3.23

 
Ratio of Debt to Equity 5.83

 

 5.80

 

 6.35

 
CRAR (%) 20.11% 19.52%

 

 19.95%

 
EPS (Rs) 5.16

 

 1.43

 

 

 1.29

 

Net Non-Performing Assets (NPAs):

  • The company’s NPAs decreased to 0.99% in FY24 from 1.66% in FY23, a significant 40.36% decrease from the previous year.
  • Additionally, the company saw a 32 basis point increase in interest spread, with the net interest margin rising to 2.85% in FY24 from 2.82% in FY23.
  • The company achieved a ten-year low of 0.99% for the Net NPA ratio at the end of FY24, compared to 1.66% at the end of FY23.
  • The company’s systematic recovery procedures resulted in a drop in GNPA and NNPA to 0.99% and 2.36%, respectively.
  • A strong emphasis on recovery and resolution measures led to the net removal of three loan accounts from the NPA list and the recovery of ₹212.70 crore from NPA loans, of which ₹90.68 crore is owed towards the principal and ₹122.02 crore towards interest income, including ~₹58.39 crore in recovered written-off assets.

Future Outlook:

Prospects for India’s Green Finance Industry and Government Initiatives: India’s green finance industry is expanding rapidly, driven by significant government initiatives and a global commitment to enhancing renewable energy capacity. By 2030, up to ~₹46 lakh crore is expected to be invested in India’s renewable energy sector. The FY25 Union Budget allocation for renewable energy has increased by 46% over the previous year to reach ₹14,980 crore, reflecting the country’s commitment to this sector.

Key Policies Announced for FY24:

  • Utility-Scale Solar and Onshore Wind: SECI, NTPC, NHPC, and SJVN have been allocated shares of the 50 GW yearly bidding cycle, including at least 10 GW of wind capacity for the 2023–2028 period. The MNRE has also approved 50 solar parks with a combined capacity of around 37,490 MW across 12 states, with 10,401 MW of that power already operational.
  • Rooftop Solar: The PM Surya Ghar Mufti Bijli Yojana was introduced, with an initial investment of ~₹75,021 crore, covering 10 million households. Under the program, each household will receive 300 free units of power per month, resulting in annual savings of approximately ₹15,000 to ₹18,000 per household.
  • Hydropower: Developers are provided with the option to determine tariffs by backloading, provided they extend the project life to 40 years, shorten the debt repayment period to 18 years, and implement a 2% escalating tariff. For hydroelectric projects where the construction work is awarded and a PPA is signed until June 30, 2028, ISTS charges have been partially waived, with the waiver available in increments of 25% from July 1, 2025, to July 1, 2028.
  • Offshore Wind: The MNRE has announced a bidding trajectory for 37 GW of offshore wind capacity, while CTU has completed the planning for transmission infrastructure for the first 10 GW of offshore capacity (5 GW each off the shores of Gujarat and Tamil Nadu). Additionally, regulations for offshore wind leases have been published, offering the possibility of extending the lease duration to 35 years.

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Strategic Partnerships Fuel One97’s Financial Turnaround

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K.P.I Global Infrastructure Limited IPO Note
IPO research, Research - February 14, 2019

K.P.I Global Infrastructure Limited IPO Note

KPI Global Infrastructure Limited a subsidiary of the KPI Group is fundamentally involved in the generation and supply of solar power. It has broadened its horizons by extending its operations...
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