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Green energy has become affordable, sustainable, and reliable over the past few years, making it not only a strategic energy procurement option for businesses, but also a necessity for their profitability and growth, industry experts said at Mercom India’s Commercial and Industrial (C&I. ) Clean Energy meet in Noida.
The panelists also highlighted the challenge of creating awareness among micro and small businesses – typically with revenues of around ₹50 million ($605,102) a year – which traditionally focus on their core business.
They often lack the bandwidth to interpret the government policy and regulatory environment related to the adoption of green energy in their state.
The Clean Energy event brings the C&I sector face to face with green energy developers and financiers who specialize in designing, implementing and financing renewable energy solutions for businesses.
During these events, MSMEs are exposed to various green-related aspects, including available technologies and suitability for different types of businesses, system costs, investment results, and financing options available in the market.
Sanjiv Layek, Executive Secretary, World Association for Small and Medium Enterprises (WASME) said that micro and small businesses mainly focus on day-to-day operations and avoid major changes due to complex government regulations.
Layek added that platforms like the C&I Clean Energy Meets are necessary to bridge the knowledge gap among MSMEs that can enable them to make decisions about using renewable energy.
“MSMEs have had a taste of success in adopting rooftop solar, and they have been returning as repeat customers for the last 4-5 years. They realize that the savings in energy costs can translate into paying EMIs on their investment for solar systems, making it an attractive option without creating additional financial burdens,” said Shah Masood Jafar, Regional Head-North of Rooftops at Tata Energy.
In addition, businesses looking for renewable energy sources in their energy mix have more options than they did in the past few years, including purchasing green energy at special prices from energy distribution companies, captive models and open captive groups, and rooftops. solar, said Vinay Pabba, Chief Operating Officer of Vibrant Energy.
“Businesses can save 15-30% on energy costs with renewable energy,” Pabba added.
Major companies in India have seen the adoption of renewables bring additional motivation when dealing with international export markets, especially from Europe and the United States, which pay a premium for sustainably produced products.
“As the largest steel producer in the country, providing green energy is part of our goal to cut emissions by 2050. At the same time, if we want to export to the world, we must meet their standards on green products.” Corporate Head-CSR at Jindal Stainless Limited Group said.
Jindal Stainless has recently signed an agreement with ReNew Power to develop a 300 MW renewable energy project for electric power in Jajpur, Odisha.
Replacement funding
State lenders – Small Industries Development Bank of India (SIDBI) and SBI – have provided participants with a full range of business financing options.
Hitesh Paliwal, Senior Vice President & Zonal, North Region, Corporate Banking Group, SBI, said green energy costs for MSMEs and corporates are typically half of conventional energy at ₹8-9 ($0.09-0.1)/kWh.
He added that banks provide loans of about 70% for captive projects or captive groups with 15-30% of the promoter’s capital. When financing the project, the bank evaluates the quality of the module and the health of the offtakers as two of the most important aspects of due diligence.
“Our renewable portfolio is growing very well, especially solar. Basically, we are still in line with the goals that the sovereign has set for itself,” said Paliwal.
Abhishek Kumar, DGM at SIDBI, said the bank dedicated to MSMEs provides 100% of the project value as a loan at interest rates ranging from 6.7% to 7.4%.
The Clean Energy event offers deep market insights that help C&I executives make informed decisions, along with helping governments realize their goal of installing 280 GW of solar by 2030.
Mercom India will host ‘C&I Clean Energy Meet’ across major cities in the country in 2023.
Sumit Ja, Assistant Managing Editor at Mercom IndiaSumit Ja Assistant Managing Editor at Mercom India. Prior to Mercom, Sumit worked as a journalist for over a decade, covering the energy sector for Reuters, CNBC-TV18, Bloomberg TV India, and Financial Express, among others. Sumit holds a BA in Print Journalism from the Indian Institute of Mass Communication, Delhi, and a BA in Engineering (BE) from the Manipal Institute of Technology. More articles from Sumit Jha[ad_2]
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