This is the second blog in our Global Spotlight Series, which provides high-level overviews of emerging clean tech opportunities in various markets across the globe. Today we will explore opportunities in India.
Aggressive national renewable energy targets across India indicate that the country is coming into a time of rapid and exciting growth in the energy industry. For a limited time, companies have the opportunity to contribute to the development of this market and realize the highest benefits. Below, James Lewis provides a summary of immediately available clean tech opportunities in India for C&I buyers.
Power Purchase Agreement (PPA) Opportunity
The Modi Government has enacted several policies designed to accelerate the installation of renewable energy projects of various technologies and sizes. The centerpiece of these policies is an aggressive installation target of 175GW of new renewable capacity by 2022. Several states – including those in the south, such as Karnataka, Telangana, Andhra Pradesh, and Tamil Nadu – offer favorable incentives for corporates looking to procure either offsite or onsite PPAs. However, some of these incentives begin to expire in 2018, making now the best time to explore PPA opportunities.
Energy Attribute Certificate (EAC) Opportunity
Although renewable capacity is growing, the structure of India’s government-led Renewable Energy Credit (REC) creates issues for consumers looking to make voluntary purchases and claims that are inconsistent with currently accepted practices. Under the current scheme, RECs are sold into the exchange market, then pooled and awarded to the highest bidder. Purchasers do not have the ability to specify the vintage, technology, or state in which the RECS are produced, or to identify these characteristics after contracting. The system presents many challenges – including the potential of double counting – for organizations attempting to make valid scope 2 emission claims.
- Companies with regional load as low as 1 megawatt (MW) can now access offsite renewables in India at competitive rates via PPAs.
- Several state-specific subsidies exist. For example, companies signing solar PPAs in Karnataka before March 31, 2018 realize a 10-year exemption from a significant cross-subsidy charge.
How Renewable Choice Can Help
Organizations with a global footprint have a growing opportunity to reduce emissions by matching their international carbon load to products and technologies emerging in India. With over 60 dedicated market professionals, as well as a PAN India presence, the Renewable Choice – Schneider Electric team offers unparalleled access to clean energy solutions in India. We manage over 600 MW in this market, 150 sites, and 55 clients with a 100% retention rate and total savings more than INR 900 million/annum.
Get in touch with our team of global experts to learn how your organization can take advantage of the current clean tech opportunities in India.