+
CEA Chief warns of energy transition challenges
POWER & RENEWABLE ENERGY

CEA Chief warns of energy transition challenges

India's transition to renewable energy requires an estimated Rs 45 trillion in financing by 2030, Ghanshyam Prasad, Chairperson of the Central Electricity Authority (CEA), said at the Economic Times Energy Leadership Awards. With current financial models and approval delays, the sector faces domestic stress, especially as reliance on imported technologies persists. Prasad emphasised the urgent need for faster, innovative financing mechanisms and a focus on domestic manufacturing to ensure energy security. "We cannot depend on imports; we need homegrown solutions," he said.

Prasad stressed the need to quickly improve energy storage technologies, particularly hydro pump storage and battery energy systems, to support India's growing renewable energy ambitions. He highlighted that India’s solar capacity is expected to grow from 85 GW to 300 GW by 2030, and up to 1,200 GW by 2047, placing immense pressure on transmission lines and grid management. "Without efficient storage and grid systems, managing the transition will be extremely challenging," he added. Prasad also underscored the challenges India faces in integrating imported technology. He pointed to the issues with wind turbines, which were not fully aligned with Indian environmental conditions. "We must ensure that technology adopted from other countries is customized to fit Indian requirements," Prasad said, suggesting that a tailored approach could prevent further setbacks in the sector.

The financing hurdles faced by India’s renewable sector were a key focus of Prasad’s speech. He noted that while capital is available, the approval process is too slow, often taking more than a year, far exceeding the typical 12-18 month project timelines for solar and wind installations. “We need a different business model for financing—one that ensures approvals in two to three months,” he suggested, advocating for a shift from individual project financing to portfolio-based mechanisms. Prasad proposed a rolling finance mechanism, where developers could receive ongoing funding based on their projects’ performance, reducing financial strain and allowing for quicker expansion. “Developers are overwhelmed with projects, and they need financing models that support their rapid scaling,” he said, highlighting the need for asset monetization to free up funds for new projects.

India’s dependency on imported equipment, especially in high-demand sectors like transformers, was another critical concern raised by Prasad. He noted that India still struggles to meet demand for key components domestically, which poses a serious risk to energy security. “We need a roadmap for domestic manufacturing to reduce our reliance on imports,” he stressed, pointing to the need for indigenous production to meet the country’s renewable energy goals.

Prasad also highlighted the role of policy and research and development (R&D) in driving India’s energy transition. He called for greater investment in high-risk R&D projects, particularly in areas like long-duration energy storage. "Without investment in innovation, India will miss the bus on leading global energy technology," he warned. The CEA chair concluded by emphasizing the need for a unified approach, where technology, policy, and finance work together to achieve India's ambitious energy goals.

India's transition to renewable energy requires an estimated Rs 45 trillion in financing by 2030, Ghanshyam Prasad, Chairperson of the Central Electricity Authority (CEA), said at the Economic Times Energy Leadership Awards. With current financial models and approval delays, the sector faces domestic stress, especially as reliance on imported technologies persists. Prasad emphasised the urgent need for faster, innovative financing mechanisms and a focus on domestic manufacturing to ensure energy security. We cannot depend on imports; we need homegrown solutions, he said. Prasad stressed the need to quickly improve energy storage technologies, particularly hydro pump storage and battery energy systems, to support India's growing renewable energy ambitions. He highlighted that India’s solar capacity is expected to grow from 85 GW to 300 GW by 2030, and up to 1,200 GW by 2047, placing immense pressure on transmission lines and grid management. Without efficient storage and grid systems, managing the transition will be extremely challenging, he added. Prasad also underscored the challenges India faces in integrating imported technology. He pointed to the issues with wind turbines, which were not fully aligned with Indian environmental conditions. We must ensure that technology adopted from other countries is customized to fit Indian requirements, Prasad said, suggesting that a tailored approach could prevent further setbacks in the sector. The financing hurdles faced by India’s renewable sector were a key focus of Prasad’s speech. He noted that while capital is available, the approval process is too slow, often taking more than a year, far exceeding the typical 12-18 month project timelines for solar and wind installations. “We need a different business model for financing—one that ensures approvals in two to three months,” he suggested, advocating for a shift from individual project financing to portfolio-based mechanisms. Prasad proposed a rolling finance mechanism, where developers could receive ongoing funding based on their projects’ performance, reducing financial strain and allowing for quicker expansion. “Developers are overwhelmed with projects, and they need financing models that support their rapid scaling,” he said, highlighting the need for asset monetization to free up funds for new projects. India’s dependency on imported equipment, especially in high-demand sectors like transformers, was another critical concern raised by Prasad. He noted that India still struggles to meet demand for key components domestically, which poses a serious risk to energy security. “We need a roadmap for domestic manufacturing to reduce our reliance on imports,” he stressed, pointing to the need for indigenous production to meet the country’s renewable energy goals. Prasad also highlighted the role of policy and research and development (R&D) in driving India’s energy transition. He called for greater investment in high-risk R&D projects, particularly in areas like long-duration energy storage. Without investment in innovation, India will miss the bus on leading global energy technology, he warned. The CEA chair concluded by emphasizing the need for a unified approach, where technology, policy, and finance work together to achieve India's ambitious energy goals.

Related Stories

Gold Stories

Next Story
Products

Interio by Godrej launches modular workplace solutions

Interio by Godrej has launched Workscapes, a modular workplace solutions category designed to help organisations configure and adapt workspaces to changing requirements. The portfolio combines mobile and compatible furniture and support elements that can be rearranged across different work modes without changes to fixed layouts.Workscapes includes Collaboration Tables, Privacy Solutions, Mobile Markerboards and Space Dividers, Power Solutions, Storage and Support Elements, Meeting and Presentation Tools, and Seating Elements. The range is designed for focused work, collaboration, informal disc..

Next Story
Infrastructure Urban

CAFE-III Gives Auto Industry Investment Clarity

The government’s new Corporate Average Fuel Economy (CAFE-III) norms have provided the automobile industry with a clearer framework for technology investments, according to industry representatives. The framework seeks to balance environmental objectives with flexibility for manufacturers while encouraging the adoption of flex-fuel vehicles and biofuels. Society of Indian Automobile Manufacturers (SIAM) President Shenu Agarwal said the five-year framework would give automakers greater predictability to plan investments and accelerate innovation. He said the regulation established annual targ..

Next Story
Infrastructure Energy

Mines Ministry to Auction Two Offshore Mineral Blocks in Andaman Sea

The Ministry of Mines will launch an auction of two offshore mineral blocks in the Andaman Sea on Thursday, seeking to unlock India’s offshore mineral potential and strengthen long-term mineral resource security. The blocks will be offered under a composite licence, which permits exploration and development activities in accordance with the applicable regulatory framework. The ministry said the auction was intended to encourage systematic exploration, attract investment and promote the use of advanced technologies for offshore mineral exploration and development. The initiative is also aimed..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code