This post is a part of DIL Intelligence series from Energy Alternatives India (EAI), India’s leading climate-tech consulting firm.
DIL stands for Decarbonization for India’s Leaders and provides comprehensive market intelligence and updates to Indian corporate leaders on prominent decarbonization efforts across the Indian industrial ecosystem. DIL is provided by EAI’s strategy consulting team. More about our consulting from here.
Why India?
- India is the third-largest emitter globally, emitting a net 2.9 gigatons of carbon dioxide equivalent (GtCO2e) every year as of 2019. The bulk of these emissions (about 70 percent) are driven by six sectors: power, steel, automotive, aviation, cement, and agriculture.
- India announced its ambition to become a net-zero emitter by 2070. This commitment has opened up numerous opportunities for companies investing in decarbonization. India has the potential to create 287 gigatons of carbon space for the world. This amounts to almost half of the global carbon budget for an even chance at limiting warming to 1.5°C.
SoftBank:
SoftBank, a Japanese multinational conglomerate, has been a significant player in the decarbonization efforts in India. The company has announced plans to invest around $20 billion in solar-energy-power projects in India, in collaboration with India’s Bharti Enterprises and Taiwan’s Foxconn. This venture aims to support the Indian government’s target of expanding the country’s solar output from 3 gigawatts to 100 gigawatts by 2022.
SoftBank’s CEO, Masayoshi Son, has stated that India could become the largest country for solar energy due to its abundant sunshine and lower construction costs. The venture aims to generate at least 20 gigawatts of energy.
Adani Green Energy Ltd. signed share purchase agreements for the acquisition of 100% interest in SB Energy India from SoftBank Group (80%) and Bharti Group (20%). The transaction valued SB Energy India at an enterprise valuation of approximately $3.5 billion. The portfolio consisted of large-scale utility assets with 84% solar capacity (4,180 MW), 9% wind-solar hybrid capacity (450 MW), and 7% wind capacity (324 MW).
SoftBank plans to invest $2-4 billion in India over the next two years. The investment will be done in the financial services sector as it changes its usual preference of infusing funds into Internet and tech-driven businesses in the country. These investments underscore SoftBank’s commitment to promoting clean energy and climate tech in India.
Indian Advantage:
Investing in decarbonization in India offers several advantages. India’s transition to a low-carbon economy will demand vast funding over the next five decades, creating major investment opportunities. India is implementing one of the largest renewable energy expansion programs with a target of achieving 175 GW of renewable energy capacity by 2022 and later up to 450 GW. The country’s abundant sunshine and lower construction costs make it an attractive destination for solar energy investments.
The government’s progressive policies, such as the implicit carbon tax on transportation fuels of $140 to $240/ton CO2e, are helping the electrification of mobility. The reduction of emissions intensity is a significant challenge, but there are emerging tailwinds in the form of reducing the costs of renewables and electric vehicles (EVs).
This post is a part of DIL Intelligence series from Energy Alternatives India (EAI), India’s leading climate-tech consulting firm.
DIL stands for Decarbonization for India’s Leaders and provides comprehensive market intelligence and updates to Indian corporate leaders on prominent decarbonization efforts across the Indian industrial ecosystem. DIL is provided by EAI’s strategy consulting team. More about our consulting from here.
