New Delhi, 18 June 2018: This report is designed to be an important resource for companies considering corporate renewable Power Purchase Agreements (PPAs) in the country.
It presents options for renewable power procurement and provides information on contract types, the regulatory landscape and market barriers. It also describes financing options and concludes with recommendations for corporate buyers. This is important because a significant bulk of India’s power generation capacity is yet to be built and a large part of the new electricity demand is expected to come from businesses.
“Corporate renewable PPAs are one of the most important ways in which businesses can reap the benefits of renewable energy and help India in meeting its Paris commitments,” says Rajiv Ranjan Mishra, Managing Director at CLP India.
“The right use of PPA mechanisms can enable companies – from small and medium enterprises to major energy-intensive corporations – to improve their competitiveness and sustainability by purchasing cost-effective renewable energy,” says Milagros Rivas Saiz, Manager at IFC Cross Industry Advisory. She adds, “PPAs in India have proven to be successful thus far with 1.8 GW of solar PPA s in place by the end of 2017, but challenges remain in further increasing such efforts.”
Renewable projects require access to the grid, which is regulated and can have charges associated with it. State level support - or lack thereof - impacts the ease of adoption and viability of renewable projects built for commercial and industrial consumers.
Fortunately, the report highlights, the economic case for renewable PPAs is now sufficiently compelling for companies to undertake the challenge of evaluating renewable procurement options and negotiating contracts on a state by state basis.
“Idea’s adoption of renewable power has been a success story. All large power consumers must evaluate renewable PPAs to increase the share of renewable power in their energy mix,” says Jacob Mathew, National Head of Projects at Idea Networks.
This report will help procurement departments within renewable energy buyers, heads of origination and business development within project developers as well as regulators and government officials in India who would like to increase their understanding of corporate renewable PPAs.
Energy buyers interested in corporate renewable PPAs across the world should also refer to the related publication “Corporate Renewable Power Purchase Agreements – Scaling up globally” for information about PPAs more generally.