New avenue of Renewable Energy (RE) procurement could help meet a quarter of India’s 2030 target for renewables: WWF India report
New Delhi, 9th June 2022: The report “Virtual Power Purchase Agreement (VPPA) for C&I consumers in India” highlights how an innovative RE procurement model could create 104* GW of RE demand by 2030 in the country. India has made significant progress in the last decade and is emerging as an important player in addressing climate change. The recently released WWF-India’s report “Virtual Power Purchase Agreement (VPPA) for C&I consumers in India” highlights the total estimated demand for VPPAs in India by 2030 could be as high as 104 GW, which could help to meet 27% of the remaining target of India’s 500 GW target by 2030. The VPPAs offer many strategic advantages that allow them to address current gaps in the market without disrupting the existing relationship with DISCOMS for procurement. This report not only describes the benefits offered by VPPAs in India but also puts forward suggestions on the specific roles of stakeholders and suggests a path forward that would enable the implementation of VPPAs in India.
“We are aware that more than 50% electricity consumption comes from commercial & industrial segment. It is our endeavor to put in our best efforts and emphasis on the possible mechanisms to provide a conducive atmosphere to commercial and industrial consumers to go for more RE. The report will come handy to the consumers and policymakers to take the initiative of enhancing the renewable electricity mix from the C&I segment into the Indian electricity grid”, said Sh. Dinesh Jagdale, Joint Secretary, Ministry of New & Renewable Energy (MNRE).
India has consistently surprised the world by setting ambitious targets for itself, especially when it comes to Renewable Energy. India’s previous target of 20 GW for solar energy by 2022 was rapidly scaled up fivefold to 100 GW. It is certain that India has made significant progress in the last decade and is emerging as an important player in addressing climate change. Furthermore, recently the country has accelerated its 2030 RE target from 450 GW to 500 GW by 2030 in addition to achieving Net Zero by 2070.
“Corporate consumers today are facing increasing pressure from stakeholders to ‘go green’. The introduction of new and innovative avenues like Virtual Power Purchase Agreements that consolidate demand effectively and are less likely to be impacted by changing regulations will go a long way towards building trust in order for corporates to participate in meeting India’s targets,” said Ravi Singh Secretary-General and CEO of WWF India.
However, if India consummates the renewable goals, there is a need to build large scale Renewable Energy on large scale. Virtual power purchase agreements (VPPAs) have emerged as
a popular tool for corporate groups to increase the share of renewable procurement significantly in a short period of time. Large corporate groups like Microsoft, Google, and Amazon have successfully used this model to meet their renewable targets internationally.
About WWF India
WWF India is committed to creating and demonstrating practical solutions that help conserve India's ecosystems and rich biodiversity. With more than 50 years of conservation journey in the country, WWF India works towards finding science-based and sustainable solutions to address challenges at the interface of development and conservation. WWF India is part of the WWF network, with offices in over 100 countries across the world. WWF India works in many states of India, through our state and field offices. The organisation works in different geographical regions and across thematic areas, including the conservation of key wildlife species and their habitats, management of rivers, wetlands and their ecosystems. On the sustainability side, the focus areas are climate change adaptation, driving sustainable solutions for business and agriculture and empowering local communities as stewards of conservation. We also work in combatting illegal wildlife trade and in bringing environment education to students through outreach and awareness campaigns. http://www.wwfindia.org
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