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Wind energy presents big opportunity

As the world's third-largest energy consumer and third-largest oil importer, India is charging ahead with the objective of providing affordable energy to all its 1.3 billion citizens and emerge as a transforming nation in the worldwide movement to decarbonize the power sector. Without stinting on its commitment to ensure universal energy security, India is also hard at work over recalibrating its energy portfolio so that the non-fossil fuel-based installed electricity generation capacity of the country goes up to 500 GW by 2030. That would lead, by 2030, to a reduction in the emission intensity of the country's GDP by about 45 per cent from 2005 levels, according to NITI Aayog's projections. The government has reiterated its intentions to lead the decarbonization movement.

Backing up its intentions, the Government of India has incentivized domestic manufacturing in the wind sector by putting in place a system of Revised List of Models and Manufacturers. It mandates that the hub and nacelle assembly/ manufacturing facilities should be in India, and more than 70 per cent of the equipment be manufactured in the country. India also has been at the forefront of regional initiatives to accelerate the transition to renewables to build a sustainable future. It is noteworthy that R.K. Singh, Union Minister for Power and New and Renewable Energy, in his keynote address to the ASEAN-India High-Level Conference on Renewable Energy 2022 recently, noted that India and ASEAN can work together to develop an ecosystem for renewables that promotes knowledge sharing, capacity building and technical assistance; and explore joint initiatives for the development of renewable energy manufacturing hubs in the region.

One of the ways to reduce the power sector's dependence on fossil fuels is to tap the wind energy that India has in abundance. The wind energy sector in the country, which is led by the local industry with fiscal and financial incentives from the government, has the fourth-highest installed capacity in the world (about 40 GW). 

The wind power sector is an important component of India's plans to decarbonize its power sector, with the Government of India setting a target of 140 GW for it out of the 500 GW renewable energy capacity proposed to be installed by 2030. However, one of the hurdles coming in the way of its growth is the increase in the GST rate on wind turbines from 5 per cent to 12 per cent, with effect from October 1, 2021, leading to an additional 7 per cent. This can result in a further slowdown in wind turbine manufacturing and capacity additions, apart from lower participation in upcoming bids due to decreased returns.

Recognizing the challenge, the Ministry of Power had announced it would write to the Department of Revenue recommending a uniform GST slab of 5 per cent on all renewable energy components. The ministry's move came after the NITI Aayog CEO made the same recommendation in a demi-official letter to the Department of Revenue. 

India has made significant progress in tapping wind energy, and there is still a lot of potential left to be harnessed. Therein lies the opportunity to script a 'Innovate and Make in India, for India and the World' success story. The Government of India clearly recognizes the potential of wind energy, given that the Ministry of New and Renewable Energy (MNRE) is believed to be coming out with a report on unlocking the untapped potential in the wind energy sector across all the windy states. 

*The piece has been put together by GE based on publicly available sources 

Diverse energy sources and robust financing required to achieve a net-zero carbon economy by 2070: GE-EY whitepaper

GE, in collaboration with EY, on June 16, 2022, launched a whitepaper titled, 'Decarbonization of India's energy sector: Policy roadmap to achieve clean energy targets.' The whitepaper envisions India's decarbonization journey by targeting diverse sources, enhancing storage solutions, and modernizing grid infrastructure. 

Aligned with India's target of achieving a net-zero carbon economy by 2070, the whitepaper charts illustrative paths to de-escalate carbon and suggests strategic policy recommendations to reduce import dependence, promote a combination of renewables, gas, storage, and smart grids, develop robust financing, and mobilize investment. 

The paper can be read and downloaded from here.

*The piece has been put together from GE-EY collaborative whitepaper

Sustainability at the core: The energy transition to drive decarbonization

From the first commercially viable lightbulb to the Haliade-X, the only independently certified 12+ MW offshore wind turbine today, GE has pioneered technologies spurring world-transforming changes and improving the lives of billions. We collaborate closely with our customers, suppliers, policymakers and other companies to turn net zero engineering challenges into business opportunities.  

GE Vernova is using two green lean workstreams to lower its Scope 1 and 2 emissions: optimizing energy use in global manufacturing facilities and expanding renewable electricity through the adoption of green tariffs, pursuit of onsite solar opportunities, and more. Having met its 2020 emissions reduction targets ahead of schedule, GE has now set a new goal to achieve carbon neutrality within its operations (i.e., Scope 1 and 2 emissions) by 2030. In 2021, we articulated GE's ambition to be a net zero company by 2050, including not just GE's own operations, but also the Scope 3 emissions associated with the use of our sold products. To achieve this goal, the businesses are making operational investments in energy efficiency, reducing emissions from the grid through smart power sourcing and using lean practices to eliminate energy waste.

In our Sustainability Report 2021, GE's business leaders proudly share our efforts to succeed both for solving world's most pressing sustainability challenges and for business: the energy transition to drive decarbonization.

Read and download the full report at 2021 Sustainability Report (ge.com)

*The piece has been put together from the global sustainability report