The power sector is currently experiencing its most significant transformation globally in history, fueled mainly by the urgent need for cleaner energy. With this transformation, Renewable energy is set to grow at an accelerated pace, giving rise to a newer global energy economy. However, the government's 2030 target to achieve 50% of installed capacity from non-fossil fuel-based generation, along with a long-term target of achieving net-zero emissions by 2070, poses significant challenges for both developers and system planners. In line with these, the government has set ambitious medium term targets to reduce emission intensity by 45% from 2005 levels by 2030, achieve 50% of non-fossil fuel capacity by 2030, and create a carbon sink of 2.5-3.0 billion tons of carbon dioxide.
Further, to achieve net-zero emissions by 2070, the Indian government has also introduced the Net Zero Emissions Bill, 2022 with an aim to provide relief for vulnerable communities from the effects of climate change, as per India's nationally determined contributions under the UNFCC; while Energy Conservation Amendment Act, 2022 poises to bring in voluntary markets into force by July 2023 in addition to mandatory de-carbonization of buildings and industries.
As of March 2023, the total installed capacity of renewables reached ~172 GW (including large hydro), majorly influenced by a considerable addition of solar power projects, which have seen significant growth over the last decade. The Ministry of Power has also identified a trajectory for the energy mix that states need to follow, with the goal of achieving 43.33% renewable energy by 2030, indicating the government's efforts for emergence of renewable dominated energy mix.
Due to such changing market dynamics and the introduction of new instruments into the market there are significant challenges for consumers and distribution utilities as well, especially in devising their portfolio strategies or moving towards 100% renewable energy.
To help the clients with a variety of challenges, Mercados EMI offers strategic guidance to private sector companies, banks, and utilities on the best effectively possible ways to navigate and capitalize on the opportunities in the emerging markets while adapting to changing environmental policies. Our services encompass a range of Policy, Regulatory, technical, and strategic challenges that are relevant to the renewable energy sector guided by a strong set of values.