India's State-Owned Energy Enterprises, 2020-2050
Identifying evidence-based diversification strategies
-
Three of India’s biggest central state-owned enterprises—Coal India Limited (CIL), NTPC, and Indian Railways—can help the country reach its climate goals while seizing a share of the clean energy market and mitigating an estimated 22%–28% cash flow gap by 2050.
-
Our evidence-based approach shows how state-owned companies can be part of India’s clean energy future while bringing revenues to the government, creating jobs, and supporting local communities.
-
Seven out of 10 largest state-owned firms in India are from the energy sector. They will play a key role in helping India become net-zero while diversifying their businesses and avoiding potential revenue gaps.
This study uses PSUs in the coal sector to show how energy businesses can identify their future uncertainties while also finding opportunities in the changing energy system. Taking a few concrete measures in the next few years to diversify their businesses can allow these firms—and other similar PSUs in India—to alleviate future uncertainty and avoid potential revenue gaps.
The companies can follow these six steps to ensure they are part of India’s clean energy future:
- Create a net-zero roadmap with interim targets, which can become a guide for future decisions.
- Develop in-house estimates on transition business risks.
- Identify new clean energy business opportunities and become early adopters of clean energy technologies.
- Set clean energy targets in proportion to anticipated change and periodically increase the ambition of these targets.
- Build strategic partnerships with other PSUs to share expertise and invest in research and development to build internal capacity in new and emerging clean energy technologies.
- Make ambitions for the transition public to send positive market signals.
The report encourages all state-owned energy enterprises to use an evidence-based approach to produce their own detailed internal assessments and a strategy for transition into a clean energy business.
You might also be interested in
India's State Energy Firms Can Help Meet Clean Energy Goals and Avoid Cash Flow Shortfall En Route to Net Zero by 2070
The study, uses public sector undertakings in the coal sector to show how energy businesses can identify their future uncertainties while also identifying opportunities in the changing energy system.
National Green Hydrogen Mission will establish India as global market leader: Experts
The high goals of the recently approved National Green Hydrogen Mission are necessary to project India as an export hub and attract global investors, said experts.
Fighting for a place to breathe
In the shadow of a retired coal-fired power plant in India's capital, Meena Devi tries to make her family home -- four brick walls with a tin roof -- a safe place to breathe.
[Podcast] GigaWhat: What (not) to do in an energy transition
India has been racing to meet its ambitious clean energy commitments, post the Paris Agreement in 2015. The ambitions have been backed by strong policy support which in turn has transformed the country’s energy market and pushed India among the top countries in terms of clean energy adoption.