Scaling Clean Energy to Power India’s Growing Demand
Sep 11, 2024
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Giorgio Fortunato, Head of Clean Energy and Power in Asia Pacific for Google, joins experts at the BNEF Summit to discuss India's monumental task of expanding clean energy to meet skyrocketing demand. They explore the urgent need for fourfold increases in wind and solar capacity. The conversation delves into the challenges of underperforming renewable projects, the importance of nuclear power, and the impact of rising energy needs from tech companies. Innovative approaches like wind-solar hybrids and pumped hydro storage also take center stage.
India's clean energy transition requires a fourfold increase in wind and solar capacity installations to meet 2030 targets amid rising demand.
Investment in workforce training and regulatory frameworks is crucial to enhance project execution speed and integrate diverse energy technologies.
Deep dives
India's Renewable Energy Growth and Challenges
India is experiencing significant growth in its renewable energy sector, particularly in the areas of wind and solar installations. Current efforts are focused on drastically increasing capacity to meet the country's ambitious 2030 targets. Notably, a key hurdle identified is the lack of a skilled workforce, which hampers project execution speed and productivity. Addressing supply chain disruptions and investing in vocational training are essential steps to ensure the renewable sector can scale effectively.
Balancing Energy Demand with Clean Energy Capacity
As global energy demand continues to rise, the importance of balancing this with the expansion of clean energy capacity becomes increasingly critical. Notably, tech companies, such as Google, are facing rising electricity consumption due to data centers and AI, necessitating a transformation in electricity grids to accommodate this change. Investments are required not only in generation and transmission but also in improving the efficiency of existing systems to support a stable energy transition. The challenge lies in ensuring that clean energy growth keeps pace with surging demand in order to achieve sustainability goals.
Investing Strategies in Renewable Projects
Investors are increasingly attentive to the performance of renewable energy projects, particularly the differences between solar and wind outputs. While solar projects generally provide more predictable returns, wind energy projects have faced challenges in consistently meeting output forecasts. Understanding project nuances, such as capacity factors and site-specific performance, is crucial for effective underwriting. Investors now seek to adjust their strategies to accommodate operational learning and improve financial returns amid project variability.
The Role of Nuclear and Storage Solutions
Nuclear energy is poised to play a significant role in India's energy mix, as it can provide reliable baseload power alongside renewables. The potential for pumped hydro storage as a long-duration energy solution is also gaining attention, offering a method to stabilize energy supply amidst increasing renewable deployments. However, challenges remain regarding the regulatory framework and the need for efficient policies that can expedite development processes for such projects. The industry's focus on integrating various technologies will be key in achieving a secure and balanced energy future.
Extending energy access to the world’s most populous nation will be a Herculean task. To do it while also achieving its 2030 clean energy goals, India must increase its wind and solar capacity installations fourfold, highlighting just how much of a feat this energy transition will be.
On today’s episode, Rohit Gadre, a BloombergNEF Specialist, moderates a discussion at the BNEF Summit New Delhi on what it will take to realize India’s clean energy revolution. He is joined by panelists Giorgio Fortunato, Head of Clean Energy and Power in Asia Pacific for Google; Kavita Saha, Managing Director, Head of Infrastructure and Sustainable Energies, India for CPP Investments; Amit Singh, Chief Executive Officer, Adani Green Energy; and Gurdeep Singh, Chairman and Managing Director, NTPC Limited. Together they discuss the ongoing issue of underperforming renewable energy assets, the role of nuclear power in India’s future and why AI’s energy demand means there is no time to waste.
Today’s episode was recorded live at BNEF's New Delhi Summit. To learn more about our Summits and to listen to more interviews, please visit https://about.bnef.com/summit/