Clean energy emerging as a viable option to meet peak power demand: ReNew founder Sumant Sinha – EQ
In Short – ReNew founder Sumant Sinha champions clean energy as a feasible remedy for peak power demand, reflecting a growing inclination towards sustainable alternatives in the energy landscape. His advocacy underscores the increasing recognition of renewable sources like solar and wind power as reliable contributors to meeting the world’s energy needs while mitigating environmental impact.
In Details – Renewable energy company ReNew recently said that it has completed construction of 1.94 GW of renewable energy assets in FY24, taking its cumulative capacity to over 10 GW. It also said t will double the amount of renewable energy it generates in the next couple of years. In an interview, Sumant Sinha, founder, chairperson and CEO of the company, talks to Raghavendra Kamath about the company’s plans. Renewable energy company ReNew recently said that it has completed construction of 1.94 GW of renewable energy assets in FY24, taking its cumulative capacity to over 10 GW. It also said t will double the amount of renewable energy it generates in the next couple of years. In an interview, Sumant Sinha, founder, chairperson and CEO of the company, talks to Raghavendra Kamath about the company’s plans.
India has been trying to emerge as the go-to destination for clean energy investment. But the record has been mixed so far. What’s your assessment?
India’s record in deploying clean energy has been very impressive. Since 2014, the installed capacity of solar and wind energy has grown by three-and-a-half times — from approximately 35 GW to 128 GW as on March 31. The share of renewables in electricity generation has almost trebled to 9% from 3%. To meet the 500 GW by 2030 target, the government has taken bold steps. Nearly 48 GW of tenders were concluded in FY24. This is a major step-up from previous years. The focus on improving the manufacturing ecosystem through incentives and trade policy measures has placed the country on a firm footing to tap the opportunity arising from the current geopolitics.
One criticism is that transmission has remained an afterthought in India’s renewable energy vision. Do you agree? Is the five-year rolling network plan helpful?
Transmission infrastructure is a critical aspect of renewable energy deployment. India is, once again, a world leader in this area. We are witnessing serious constraints in accelerated clean energy deployment arising from inadequate transmission infrastructure in major economies like the US and the EU, whereas this is much less so in India. Having said that, we still need to build significant new transmission capacities in the next few years. The five-year rolling network plan is a step in the right direction. It allows for forward-thinking in terms of grid development and provides visibility to the private sector on suitable locations for siting of the projects. With time, you will see more IPPs (independent power producers) enter this space. ReNew’s first inter-state transmission project to evacuate solar and wind power in Karnataka was initiated last year. I believe the rolling plan will be more successful with a stronger multi-pronged approach to address transmission issues around increased investment, technological advancements, and improved coordination between developers and grid operators.
What is your wish list from the government?
The government is already very focused on enabling the clean energy sector’s growth. We have been fortunate that our sector has seen considerable incentives and reforms. I would like to see continued support and commitment to the clean energy transition. I am confident that the new government will maintain the trajectory of concluding auctions for 50-60 GW capacity each year for the next few years, which will be extremely favourable to the sector’s growth. The industry will work closely with the government to strengthen the ecosystems for manufacturing of clean energy components and to tap the opportunity of India emerging as an exporter of green hydrogen.
How far has RE helpful in mitigating the rising demand in the country?
India’s energy consumption has been growing at a steady pace of 7-8% every year but our per capita consumption is about 1,100 kWh, which is about a quarter of that in China and a thirteenth of the US. The growing demand will have to be managed in parallel to India’s commitment to reducing emission intensity of GDP by 35% from 2005 levels, which is where renewables will play a major role. We see new wind and solar capacities being auctioned that are much cheaper than established and new coal plants. With rapid growth and maturity of projects that make renewables power firm and dispatchable, renewables are increasingly emerging as a viable option to meet peak power demand and during evening hours.
You said you will double the amount of clean energy the company generates over the next few years. How will you fund the expansion plans?
Broadly speaking, our total investments will be a function of our portfolio mix. The capital investment required to establish a wind energy project is double that of a solar project. It takes about `4 crore to set up 1 MW of solar unit, compared to `8 crore for a 1 MW wind project. We are prudent with our investments even as we explore new areas like green hydrogen and carbon, while continuing to grow our core businesses.
What measures has ReNew taken in sustainable practices?
ReNew has set an ambitious target of becoming net-zero by 2040 which is 30 years ahead of the country’s own target. Our transition plan has been validated by the Science-based Targets Initiative. We believe in increased efficiency, but not at the cost of sustainability or safety. In fact, we have already been validated as carbon neutral for our operations in terms of Scope 1 and Scope 2 emissions for the third consecutive year. Last year, we avoided 14.08 million tonne of CO2e emissions, which was 0.5% of India’s carbon emissions and saved around 318,708 KL of water through robotic cleaning of solar modules, reducing our dependency on groundwater. Going forward, we have pledged to work towards zero solid waste in landfills and positively impact 2.5 million people through our CSR initiatives.
