EY-FICCI identifies over 600 ‘shove

  • The project pipeline has the potential to accelerate ~INR 2 Lakh crore of equity and ~INR 4 Lakh crore of project finance debt
  • More importantly, support close to ~15 lakh fresh jobs in the immediate future

New Delhi, 11 June 2021: EY in collaboration with FICCI, released a report today titled, Accelerating post-pandemic economic recovery with clean energy infrastructure and jobs in India”, which highlights concrete policy recommendations for balancing economic recovery and climate neutrality goals in the post-COVID stimulus efforts by Government of India. The report highlights the need for new energy infrastructure to boost economic recovery and self-reliance without reversing the trends of greenhouse gas (GHG) emission, air pollution and other climate change-related shocks in the post-COVID economic recovery era.

The EY – FICCI report has identified over 600 ‘shovel-ready’ low carbon investment opportunities in the pipeline with tremendous potential for post-pandemic economic recovery and job creation in India.

Somesh Kumar, Partner and National Leader, Power & Utilities, EY India, said, “Over 600 ‘shovel-ready’ low carbon investment project pipeline identified by us has the potential to accelerate ~INR 2 Lakh crore of equity and ~INR 4 Lakh crore of project finance debt but more importantly support close to ~15 lakh fresh jobs in the immediate future. Further, the stimulus measures recommended can help advance the clean energy project pipeline and help frame the next leg of post-pandemic stimulus action.”

He further added, “Policymakers need to reflect on the urgency of the challenges posed by COVID-19 and leverage on the existing clean energy programs for quick economic recovery. Also, labour intensive ‘shovel ready’ low carbon infrastructure projects having strong interactions with the hard-hit construction industry must be at the focus of the post-COVID green stimulus efforts.”

The EY - FICCI report emphasizes what is at stake in terms of economic development, capital mobilisation, self-reliance, jobs and environment in the critical thematic areas of clean energy infrastructure viz. Utility-scale Renewable Energy (RE) power generation, Rooftop solar PV deployment, Decentralized RE power generation, Original RE equipment manufacturing and EV charging infrastructure.

  • Utility-scale Renewable Energy (RE) power generation
    • Stimulus action
      • Clarity on waiver of inter-state transmission charges and losses on supply of solar and wind power beyond June 2023
      • Set up a mechanism to rediscover tariffs for stranded projects without power purchase agreement (PPA)
      • Establish a robust coordination mechanism between Central off-takers and State governments toward firming up long term power procurement plans
      • Expand the domestic lending base for hybrid RE power projects in the pipeline
      • Promote electrification of end-use to boost demand growth
    • Project pipeline and impact
      • 332 projects
      • 84 GW of pipeline capacity
      • INR 1.27 lakh crore equity
      • INR 2.97 lakh crore debt
      • 8.7 lakh fresh jobs
      • 4,109 MT avoided CO2 emissions
  • Rooftop Solar PV deployment in residential, Commercial & Industrial (C&I) sectors
    • Stimulus action
      • Boost demand for rooftop solar deployment in the institutional sectors, especially rural health centres and schools
      • Promote net metering in all categories of consumers up to 1 MW of sanctioned load
      • Promote third party owned business models for accelerated RTPV capacity addition in the domestic category
      • Set up contactless digital platforms for reducing transaction costs and enhancing consumer experience of ease of doing rooftop solar
    • Project pipeline and impact
      • 166 projects
      • 18 GW of pipeline capacity
      • INR 24 thousand crore equity
      • INR 56 thousand crore debt
      • INR 5,839 crores capital subsidy
      • 4.37 lakh fresh jobs
      • 622 MT avoided CO2 emissions
  • Decentralized RE power generation (PM-KUSUM)
    • Stimulus action
      • Generation based incentives for decentralized grid-connected solar PV systems co-located with crops on agriculturally productive land parcels
      • Dedicated financing facility for improving farmer access to low-cost debt funds and boosting commercial viability of 1-2 MW scale ground-mounted Solar PV projects on CAPEX model
    • Project pipeline and impact
      • 44 projects
      • 14.5 GW of pipeline capacity
      • INR 13 thousand crore equity
      • INR 29 thousand crore debt
      • INR 7,050 crore capital subsidy
      • 1.25 lakh fresh jobs
      • 550 MT avoided CO2 emissions
  • Original RE equipment manufacturing
    • Stimulus action
      • Boost demand for high-efficiency solar PV modules and Advanced Chemistry Cells (ACC) battery solutions
      • Formulate and target new Production Linked Incentive (PLI) schemes toward coal-dependent states
    • Project pipeline and impact
      • 12 projects
      • INR 15 thousand crore equity
      • INR 34 thousand crore debt
      • 40,000 fresh jobs
  • EV Charging Infrastructure
    • Stimulus action
      • National / state-level policy frameworks to promote and incentivise electric utility investment in EV charging infrastructure
      • Restructure markets to create alternate revenue streams for EV charge point operators and investors
    • Project pipeline and impact