Change is a constant companion in this world. Even when it comes to energy, transition to a cleaner, greener fuel is inevitable. 'Going green' has become the watchword for global companies and is becoming a prerequisite for business survival. Indian companies are also joining this trend and are investing in greener projects. Influential business personalities like Adani, Ambani and Tata now have considerable stakes in the renewable energy (RE) sector, thanks to the pace at which global energy transition is taking place.
Recently, the Maharashtra Electricity Regulatory Commission (MERC) allowed Adani Electricity Mumbai Limited (AEML) to go ahead and procure up to 500MW from RE projects which will be complemented with power from other conventional sources. The power will be procured on a round-the-clock (RTC) basis and count towards AEML's RPO target. In order to match the performances of influential stakeholders like Adani, Ambani will have to design his RE plans along the same lines.
AEML is also set to hold Adani's first overseas sustainable bond sales later this year. Expected to raise around $300 million, the bonds will have a maturity period of 10-years and will increase the share of RE in its energy procurement mix to 60 per cent by 2027. Other than Adani, Ambani is another big fish that is making a play in India's RE industry.
After announcing the entry of the Reliance Industries Limited (RIL) in the RE sector, the group has been quite active. It has struck acquisition deals with green companies and RE technology manufacturers. RIL Chairman Mukesh Ambani was quoted saying that going green was necessary to survive in today's business world. The group is currently looking to buy Norwegian solar module maker, REC Group, as part of its push towards clean energy.
India is on the precipice right now as the old methods give way to new ones. The adoption of RPOs and RECs will contribute towards making businesses RE friendly and open up new avenues for growth. The stage is set for India's rise as a global leader in green energy. It will take a concerted effort by the government, stakeholders like Adani and Ambani andthe common man to get India to the top.
