More and more companies are procuring renewable power for their operations to help manage their electricity costs while contributing to corporate carbon emissions reduction targets. In India, the main drivers for many companies to do so are rising electricity tariffs for commercial and industrial consumers, falling prices for solar photovoltaic (PV) technology and corporate sustainability goals.

A frequently used approach for companies to purchase renewable electricity is a corporate renewable power purchase agreement (PPA). According to Bloomberg New Energy Finance (BNEF), India was the second largest growth market for corporate renewable PPAs after the US in 2019, with an addition of 1.4 GW of capacity. However, in 2020, India witnessed a significant slowdown in corporate renewable PPA activity, primarily due to regulatory changes and exacerbated by the COVID-19 pandemic.

This third market and policy update for corporate renewable PPAs in India provides readers with a renewed overview of market trends, policies and regulations from 2020, as well as an outlook for 2021. It finds that despite the evident slowdown in PPA capacity in 2020, there is a positive outlook for 2021. Company ambition for procuring renewable power is increasing, company appetite for corporate renewable PPAs is high, and power demand has bounced back to pre-COVID-19 levels.

View previous publications in the series :

• Corporate Renewable PPAs in India – market and policy update (December 2019)
• Corporate Renewable PPAs in India – a market and policy update for 2019 (June 2019)
• Accelerating corporate procurement of renewable energy in India (June 2018)