The global economy is slowly picking up the pace after months of slowdown caused by the COVID pandemic. Industries are quickly finding their feet as they rush to clear backlogs and take on new orders. The power generation sector in particular, is witnessing a spike in power demands, with both conventional and renewable energy (RE) projects struggling to meet requirements.
India’s power industry is also facing similar issues. Even though conventional thermal plants, along with RE projects, are churning out impressive numbers, supply is predicted to fall well short of projected demands. Although the RE sector has heavyweights like Adani, Ambani and Tata, the surging power demands has effected new launches and ventures by stakeholders.
New deals and acquisitions are being brokered as green energy companies prepare to face tricky post-pandemic conditions. Despite the gloom of uncertainty that drapes the atmosphere, major stakeholders like Adani have acted decisively and kept on track. After acquiring the SoftBank Group-backed SB Energy, Adani has announced its intention to raise a $600 million through overseas bonds. The proceeds will go towards financing green projects for the next two years as well as capital expenditures. The Adani Group had previously achieved its 25GW renewable energy capacity target this June, a full four years ahead of schedule. Currently, its operational capacity stands at 5.4GW after its latest acquisition of SB Energy.
Other than Adani, Ambani has also been quite busy. Hardly a month after it entered the RE business, Reliance Industries Limited (RIL) announced its intention to invest $50 million in Ambri Inc., a renewable energy storage company. The investment is a part of a grand fundraising by Ambri from strategic investors to the tune of $144 million. The renewable energy storage manufacturer was working on a liquid metal grid battery technology with plans to commercialize it by 2022. RIL is also pushing for a collaboration with Ambri to create a manufacturing facility for such batteries in India.
India’s renewable energy sector has taken quite a beating but is soldiering on. With markets expected to open up in the coming days, if not weeks, the sector certainly has better days to look forward to. Players like Adani, Ambani, Tata, ReNew Power, etc., have significant number of projects in the pipeline that will increase India’s RE capacity by a considerable margin. The introduction of new technology like advanced energy storage batteries and the influx of funds are exactly what the sector needs to tackle the post-pandemic scenario on an optimistic note.