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.

Next Story
Resources

Skyview by Empyrean is Making Benchmarks in the Indian Ropeway Industry

FIL Industries Private Limited, the parent company of Empyrean Skyview Projects that pioneered ropeway mobility solutions in India with Jammu’s Skyview Gondola, is currently developing the Dehradun-Mussoorie ropeway and is on track to complete Phase I by September 2026. The ropeway is set to be India’s longest passenger aerial monocable covering 5.8 km between the foothills of Dehradun in Purkulgam and MDDA taxi stand in the hills of Mussoorie in just under 20 minutes. The firm pioneered green mobility solutions in India with the development of the flagship Skyview Gondola in Jam..

Next Story
Technology

Creativity is for Humans, Productivity is for Robots!

On most construction sites, the rhythm of progress is measured by the clang of steel, the hum of machinery and the sweat of thousands. But increasingly, new sounds are entering the mix: the quiet efficiency of algorithms, the hum of drones overhead, and the precision of robotic arms at work. Behind the concrete and cables, an invisible force is taking hold: data. It is turning blueprints into living simulations, managing fleets of machines, and helping engineers make decisions before a single brick is laid. This is not the construction of tomorrow; it is the architecture of today – built on ..

Next Story
Infrastructure Urban

Bhartiya Urban Unveils ‘Bhartiya Converge’ GCC Enablement Platform

Bhartiya Urban has launched Bhartiya Converge, its latest business venture designed to become India’s premier platform for enabling Global Capability Centres (GCCs). The initiative offers an integrated ecosystem aimed at helping global clients gain a competitive edge in today’s rapidly evolving business environment. Focused on enhancing turnaround time and operational efficiencies, the company seeks to deliver better business outcomes powered by top-tier talent. Bhartiya Converge presents a customised and integrated suite of microservices that addresses the nuanced and evolving operational..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?