Coal India, NTPC, and Railways can help our nation to meet clean energy goals as per the report of the International Institute for Sustainable Development.
Identifying evidence-based diversification strategies
India has positioned itself as a strong advocate of climate action among emerging economies, aiming to significantly scale up renewable energy by 2030 and to reach net-zero emissions by 2070. The country’s energy state-owned enterprises, known as public sector undertakings (PSUs), will have a key role to play as India gears up to become net-zero by 2070—yet, many of them remain heavily dependent on coal. This study provides an evidence-based approach to identify diversification strategies that will prepare these firms for the future while continuing to bring revenues to the government, creating jobs, and supporting local communities.
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:
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.
With a $2.5 billion plan to boost hydrogen production and demand in the country, India is betting on the fuel to help achieve its 2070 net zero target. Lights On can reveal details of the new plan, expected to be published towards the end of this month, which according to its designers will avert nearly 50 million metric tonnes (MMT) of greenhouse gas emissions per year by the end of the decade, and lead to the addition of 150 GW of renewable capacity.
With a $2.5 billion (INR ~199 billion) plan to boost hydrogen production and demand in the country, India is betting on the fuel to help achieve its 2070 net zero target.
As per a recent report published by the International Institute for Sustainable Development, fossil fuels account for around 76% of India’s total primary energy supply. 18% of the total revenue of the Government is derived from fossil fuels. Against this backdrop, India is set to take a giant leap by the passing of the Energy Conservation (Amendment) Bill, 2022 (Bill) by the Lok Sabha on August 8, 2022.
This webinar presents the findings of a new IISD report that provides an evidence-based approach to ensuring India’s state-owned enterprises (SOEs) are part of the country’s clean energy transition while also continuing to bring revenues to the government, create jobs, and support local communities. The presentation is followed by a panel discussion on opportunities for SOEs in the clean energy future.
SOEs—known in India as Public Sector Undertakings (PSUs)—hold dominant positions in India’s energy sector, controlling coal mining, transport, power generation; natural gas exploration; and crude oil extraction, refining, and marketing. They bring sizable financial returns to the Government of India, employ millions of citizens, engage in community building, and take on activities of strategic importance. With the growing pressure from cost-competitive clean energy sources and India’s global decarbonization commitments, Indian PSUs are expected to face challenges due to their fossil-dependent business model.
IISD has undertaken a study to build an evidence-based approach to how firms can identify business risks while also illustrating the “opportunity” in transition—how SOEs can mitigate risk by helping deliver a share of India’s clean energy targets.
Organized in partnership with the Indian Institute of Management Calcutta Centre for Development and Environment Policy (IIM–C CDEP), this webinar shows how this approach can be applied to three central-level PSUs that play fundamental roles in the coal-to-power value chain: Coal India Limited, the largest national coal miner; NTPC, the largest thermal power producer; and Indian Railways, the primary transporter of coal across the country.
Balasubramanian Viswanathan, Policy Advisor, IISD
Moderator:
Runa Sarkar, Professor, IIM Calcutta
Panellists:
Mritiunjoy Mohanty, Professor, Economics, IIM Calcutta
Council On Energy, Environment & Water (CEEW) and International Institute for Sustainable Development's (IISD) Global Subsidies Initiative (GSI) have published a research report titled Mapping India’s Energy Policy 2022. The public resources that support the use of fossil fuels, renewable energy sources, and electric vehicles are updated in the study.
Almost nine months after Narendra Modi committed India to a net-zero goal and a drastic increase in the share of renewables, the country’s cabinet has finally approved an enhanced climate action plan, adding more ambitious targets but leaving some expected goals out.
Union Minister of Power Raj Kumar Singh introduced the "Energy Conservation Amendment Bill, 2022" in the Lok Sabha, which aims to boost clean energy and help in achieving India's commitments towards climate change.
The report takes stock of India’s current EVs ecosystem and where the sector may be heading in the future, with a focus on drivers of and barriers to investment. The research for this study involved in-depth consultations with experts, policymakers, investors, and companies, as well as results from an online survey with EV experts and companies. The report presents the main takeaways of this research.
India is successfully incentivizing consumer demand for electrified two-wheel and three-wheel vehicles.
India has major potential for battery manufacturing and has initiated policy schemes to incentivize battery manufacturing in the country.
India will need to meet challenges other countries have to deal with as well, including supply chain vulnerabilities and guaranteeing enough recharging infrastructure.
The main takeaways from this report can be summarized as follows: