Page 14 - Edelweiss India Conference 2022 FLIPBOOK

THE NEW EDGE

We note upward revision of certain targets declared by India in the previously held COP21
summit. Emission intensity targets have been revised up from 30–35% to 45% of economy.
Non-fossil fuel power generation mix to be increased from 40% (COP21 summit) to 500GW
(COP26), which we estimate would be about 60% of total capacity.

…should speed up New Energy development process

The aggressive targets set by India at COP26 signify its strong commitment to combat
climate change across the globe. In our view, this is likely to expedite developments in the
New Energy” space within the country.

Several companies in the listed and unlisted space are gaining a toehold in this space. Many
companies have already announced their commitments along with capex plans pertaining

Besides, the Indian government has announced a Production Linked Incentives (PLI)
scheme across sectors. In order to enhance domestic manufacturing of solar PV cells and
modules, the cabinet has approved the PLI scheme namely, “National Programme on
with an outlay of INR45bn.

The government has also approved the PLI scheme for manufacturing of Advance Chemistry

also cleared the PLI scheme worth INR260bn to boost the production of electric vehicles
and hydrogen fuel cell vehicles.

An independent study released by CEEW Centre for Energy Finance (CEEW-CEF) mentioned
India would require a total investment of USD10.1tn to achieve net zero emissions by 2070.

In our view, these initiatives are likely to provide strong impetus to developments within
PV solar power cost
the “New Energy” space in the country.
crashed 85% over
the past decade,
catapulting India to the Solar to dominate, skewing energy mix
top of the heap as the
lowest-cost generator With global power generation capacity set to almost triple by 2050,
of solar energy renewables, particularly solar, are likely to see dominant penetration. Solar

would thus form 38% of overall installed power capacity by 2050 (up from
11% in 2019). India targets to double its solar capacity within two years.

Global capacity to skew towards renewables, mainly solar

Overall, worldwide power generation capacity is likely to triple by 2050, wherein the share
of renewables is likely to increase to 68% in 2050 (up from 35% in 2019).

12 Edelweiss Securities Limited