- JMK Research says between January 2020 and November 2020 Indian corporates signed up for 800 MW renewable energy capacity
- There is higher uptake for energy contracts for solar power assets, than for those with wind assets
- 2021 should have a higher uptake of corporate renewable PPAs as the market demand grows and a friendly regulatory framework is expected comes into place
In 2019, corporates in India contracted 1.4 GW of renewable energy capacity making the country the 2nd largest market for corporate renewable power purchase agreements (PPA) that year after the US, according to Indian consultancy firm JMK Research. However, due to regulatory challenges at state level and COVID-19 pandemic related disruptions in 2020 Indian corporates contracted only 800 MW. What’s also significant is that corporate renewable PPAs in India with solar assets have higher installation rates than those with wind assets.
In a World Business Council for Sustainable Development (WBCSD) commissioned report titled Corporate Renewable PPAs In India: Market & Policy Update-January 2021, JMK Research covers the period between January 2020 to November 2020 for the report. It found Gujarat to have increased installation capacity from corporate renewable PPAs compared to the rest of the states among which Tamil Nadu is at the top with the largest amount installed under the category.
The analysts are quite optimistic for the corporate renewables PPA market to grow in 2021 as companies wake up to the benefits of renewable energy in driving down their electricity costs and regulatory environment becomes more conducive to the growth of clean energy. A lot would also come with the government strictly enforcing meeting renewable purchase obligations (RPO) for discoms leading to cheaper commercial and industrial (C&I) grid tariff rates as well as privatizing loss making discoms.
At the same time, contracts that were put on hold due to COVID-19 in 2020 may also be realized in 2021.
The report is available for download on WBCSD’s website.
Globally, 23.7 GW of clean energy capacity was contracted by corporates in 2020, growing over 20.1 GW procured in 2019, according to Bloomberg New Energy Finance (see 23.7 GW Corporate Clean Energy PPAs Signed In 2020).