Energetica India Magazine March 2022

energetica INDIA- Mar_2022 49 RENEWABLE POWER Finance angle Green energy is not just for the environ- ment. It houses a strong financial foot- ing as well. According to IBEF, 49% of total elec - tricity is expected to be generated by re - newable energy by 2040. This use of re - newables in place of coal will save INR 54,000 crore annually. Replacing expensive coal power with renewables is poised to yield cost sav- ings to operators by USD 32 billion a year and decrease annual carbon dioxide emissions by around three billion tones, as estimated by the International Re - newable Energy Agency (IRENA). Right policy measures and financial incentives will pave the way for steady renewable adoption as there are positive ramifications for everyone. While the initial technological and infrastructural setup can be expensive, as the adoption widens economies of scale, there will be greater efficiency and reduced cost across the chain. The big picture This move into cleaner and greener en - ergy is unparalleled and it is moving at considerable pace. India’s green energy industry received foreign direct invest- ment (FDI) worth USD 7.27 billion from 2014-15 till June 2021, as per the Ministry of New and Renewable Energy (MNRE), of which USD 797.21 million came during 2020 -21 itself. Projects are heating up with India re- cently announcing to reduce net carbon emissions to zero by 2070 at COP26 in Glasgow. The opportunity is more than ever for both the public and private sector to come together and build the requisite infrastructure, as well as pull in tech - nological power plays. Employment potential is high and financial ramifica - tions are positive as the scale goes up. While the incoming waves of COVID-19, including the recent surge of Omicron, re- instate a certain degree of uncertain- ty from time-to-time, it is unlikely for us to witness catastrophic overhauls as we saw in 2020. As this wave peaks up and tapers down in the coming months, eco - nomic momentum will bounce in again. Green energy will continue to work on its target in the macro backdrop and we should too. We need to identify the right projects and areas that we can par- ticipate in and partner together in this green-energy drive.