Clean energy offers an increasingly affordable solution for businesses. It is widely available without the risk of fuel inflation. And given that over 50% of electricity demand in India is from businesses, profits from clean energy have the opportunity to shape India’s transition to a low carbon energy future.
India is the fastest-growing economy in the world – with an ever-increasing demand for electricity to power its expanding industry and urbanization. Because of this, India is currently the third largest consumer of electricity in the world. But despite adding considerable electricity generation capacity in the last decade, India’s supply is inadequate to meet its growing demand. On top of this, the cost of electricity for industrial and commercial customers is steadily rising, partly driven by fuel shortages and infrastructure issues.
Profits from clean energy for India
Companies can provide technologically sound, financially feasible and professionally managed energy solutions in return for policy support. From tax relief for generators to energy security and protection against cost inflation for consumers, there are clear profits from clean energy for businesses switching their electricity supply to renewables.
Early adopters of renewable electricity sourcing are shaping the energy market to their needs. They are disrupting existing energy systems and paving the way for the clean energy markets of tomorrow, says a Capgemini report on how ‘RE100 Companies Have An Edge On Their Peers’. For example, the first corporate renewable PPAs were developed by companies reluctant to mobilize capital resources to acquire their own renewable assets; yet they still wanted their sourcing strategies to have a more direct impact on the grid.
Energy providers had to adapt to those demands and reshape their models – leading, as an example, to the now thriving PPA market. Similarly, some large companies are exploring the use of microgrids, energy storage, demand-response mechanisms and other such innovative solutions in a coordinated way. These companies are ready to make the most of the opportunities of the flexible, decentralized and decarbonized power systems of tomorrow.
This transformation also applies to the suppliers’ side: The utilities that will win the largest market shares in the future are the ones that will allow their customers (private as well as corporate) to purchase and use energy in ways that meet their specific needs and align with the new opportunities of the digital revolution.