Energetica India 89 - May 2020

Corporate Renewable Energy Sourcing – Way Ahead Towards 100% RE in India The country’s efforts to transition to a renewable energy technology, reshaping investments, generating new jobs and creating wealth in the sector can help create possibilities for healthy, resilient and thriving future economies. However, to secure a leadership position, it must accelerate the transition to clean power with levers such as knowl- edge, technology, partnerships and policy. The emergence of a new threat – COVID-19 – has shaken the world and renewed calls for a more resilient and sustainable economies. Amid this, we are also at the start of the Climate De- cade –a moment in history where greater and faster action is vital to address the looming threat of climate change. This being a critical year, the start of the cli- mate decade,ourfocus on transitioning- to low-carbon, resilient energy systems must not falter. India is committed to have a national grid with 40% installed electric capacity from non-fossil fuels by 2030, under the Paris Agreement. As of March 2020, the country already stood at 24% (87GW) of renewable energy installed capacity (not including large hydro projects). While governments navigate plans and policies to further push the adoption of renewable energy, businesses are mak- ing strong commitments to help transi- tion to low-carbon energy systems. De- cisions taken today will set the strategic direction and preparedness of power systems that can challenge future crises for years to come. Businesses moving us forward Now more than ever, businesses are not stepping back in their commitment to accelerate the transition to clean ener- gy systems and meeting their sustain- abilitygoals. This is especially so when it comes to the power sector. Corporate (industrial and commercial sector) elec- tricity demand accounts for over 40% of total electricity consumption in India and globally. Businesses are thus a major market force to drive the decarboniza- tionof the power sector. Globally, we are seeing greater ambition from businesses driving transformative changes for a clean energy system. Info- sys, Dalmia Cement, Mahindra Holidays & Resorts and Tata Motors – are Indi- an-headquartered companies that have voluntarily adopted 100% renewable electricity consumption targets by join- ing The Climate Group and CDP’s RE100 initiative. Additionally, there are more than 40 international RE100 companies that have India presence and are moving their operations to renewable energy. Further, data disclosed through CDP shows a steady rise in climate commit- ments and action by Indian businesses. In 2019, 50 Indian companies reported greenhouse gas (GHG) emission reduc- tion targets. About 23 companies have reported renewable energy targets and about 32 companies have identified en - ergy-related opportunities in their direct operations and in their supply chain. A majority of these companies have esti- mated opportunities worth ` 285 billion in the use of low-carbon sources of energy. Higher adoption of renewable energy by corporates is rapidly shift global energy markets to an increasingly de-carbon- ized energy system. In 2019, compa- nies committed to RE100 grew by over a third, bringing the total count to 232 companies, with 3 in every 4 companies targeting 2030 to achieve 100% renew- able electricity.Even in difficult economic times, businesses are stepping ahead on climate - more recently, Coty, one of the world’s largest beauty companies, Refinitiv, a global leader of financial mar - kets data and infrastructure, and Master- card, have joined RE100. In terms of cumulative energy demand, RE100companies consume 236 TWh of electricity. If they were a country, RE100 members would be the 20thlargest electricity consumer in the world, ap- proximately the size of Indonesia. Inter- estingly, 44% of new joiners to RE100 in 2019 come from across the Asia Pacific. Indian members like Infosys Limited and Tata Motors are sourcing considerable amount of renewable energy. Voices from businesses In these times of the pandemic, busi- nesses will face large scale disruptions. While they will rally for business con- tinuity and consolidation, many would continue to invest in climate-friendly pol- icies and decisions to future-proof their business. Now, they are finding ways to navigate the changing RE ecosystem to better establish their commitment to RE sourcing. Infosys, a RE100 member, has already transitioned 46% of their overall energy consumption to be from renewable en- ergy sources (as of 2019). When asked on their continued motivation, and accel- erators to reach 100%, Bose Varghese, Head of Green Initiatives said; “We are convinced that renewable ener- gy is the biggest lever available to us in the fight against climate change. Tech - 54 energetica INDIA- May_2020 Atul Mudaliar Senior Manager – Energy Transitions (India), The Climate Group Shailesh Telang Technical Manager, Renewable Energy, CDP India