[00:00:00] Part 5 Transitioning India Towards Sustainability Even though nations have declared their national
[00:00:12] determined contributions, NDCs under the Paris Agreement to the United Nations, UN, according
[00:00:20] to the emission gap report 2021 by UNEP, to get on track to limit global warming
[00:00:27] to 1.5 degrees Celsius, the world needs to take an additional 28 gigatons of
[00:00:34] Equivalent Carbon Tagside Reduction in annual emissions by 2030.
[00:00:40] This is over and above the updated, unconditional NDCs.
[00:00:46] India has also set an ambitious target to reduce the emissions intensity of its GDP by 45%
[00:00:53] by 2030, with respect to 2005 levels, to limit global warming to 1.5 degrees Celsius and become
[00:01:03] a net zero nation by 2070. The target to becoming net zero has fast-tracked the pursuit
[00:01:11] of sustainability and renewable-led energy transition in the long term. Over the last 15 years,
[00:01:19] energy transition from thermal to renewables has become a reality.
[00:01:25] Renewables capacity has seen over 15% compounded annual growth rate over the last five fiscal years.
[00:01:33] India now boasts of installed renewable energy capacity of 172 gigawatt,
[00:01:40] inclusive of about 47 gigawatt of hydrocapacity, the fourth highest install base for green power worldwide.
[00:01:51] This is expected to increase substantially as the country strides towards achieving its target
[00:01:58] of meeting 50% of its energy requirements from non-fossil fuel sources by 2030.
[00:02:06] Chairperson Central Electricity Authority, CEA, Mr. Ghanesh Yamprasad,
[00:02:12] talks to us about the current renewables transition of India and the role of power exchanges in such a transition.
[00:02:21] India is transitioning towards a green future at a much faster pace, keeping energy security in view
[00:02:28] to supply 24 by 7 reliable electricity to all the consumers.
[00:02:33] Power exchanges have evolved to meet the requirement of discounts,
[00:02:38] open-assist consumers and many more. In this endeavor, RTM real-time market has helped
[00:02:44] discounts to mitigate the shortages by purchasing power at the last hour.
[00:02:49] Further, two exclusive green products, green day head market and green thermahead market
[00:02:56] is helping renewables, developers and the buyers to buy and sell renewable power as in when it is
[00:03:05] permissible. Power exchanges will play an important role in countries' energy transition towards
[00:03:12] net zero, market-based models facilitate immediate payment realization to renewable energy
[00:03:20] generators which would further boost the investment in the renewable sector.
[00:03:25] The global experience shows that power market can be a catalyst for accelerating renewable generation
[00:03:32] capacity addition by managing the intermentational associated and reducing the cost of renewable
[00:03:38] integration. We must increase the role of power exchanges in the Indian context,
[00:03:44] accordingly, recently the group for development of electricity market in India,
[00:03:49] constituted by Ministry of Power has released the report and have addressed
[00:03:55] the key issues and charted out a roadmap up to 2030 for deepening the power market.
[00:04:01] We are hopeful that IEX will continue to add value and play an important role in deepening
[00:04:08] the country's power market. To decarbonize the Indian economy, the amendment in the Energy
[00:04:15] Conservation Act 2022 has facilitated the policy and regulatory framework for creation of a
[00:04:23] national carbon market in the country. Based on the draft national carbon market blueprint
[00:04:30] released by the Bureau of Energy Efficiency, that is B, it is expected that the perform
[00:04:37] achieve and trade PAT scheme shall transition with broader scope and in a phased manner to create
[00:04:45] India's national carbon market. A vibrant carbon market will help in mobilization of
[00:04:52] Capix and meet the compliance of disclosure requirements for ESG, BRSR and Electricity Act.
[00:05:01] In addition, carbon markets will also play a crucial role in efficiently channelizing climate
[00:05:07] finance by sending market signals to investors and corporates. Power exchanges can play an
[00:05:15] instrumental part here by helping industries and corporates, purchase, carbon credit certificates
[00:05:22] or compliance attributes in a competitive and transparent manner for meeting their compliance needs.
[00:05:30] Consequently, a transparent and reliable carbon trading platform is vital to achieve both global
[00:05:37] and national sustainability goals. IEX has also set up a wholly owned subsidiary company
[00:05:45] international carbon exchange to explore business opportunities in the voluntary carbon market.
[00:05:52] The exchange will enable robust price discovery for these carbon credits to provide market signal
[00:05:59] for driving investments in sustainable projects. It has been a phenomenal journey for IEX and its
[00:06:06] association with India's power markets. Let's hear from Mr. Goyal on his vision of India's
[00:06:13] energy transition with IEX as a major facilitator for such a transition.
[00:06:20] Over the past 15 years, IEX has been a dedicated partner in India's energy transition.
[00:06:26] We have harnessed technology and innovation to introduce compression in the India's power market,
[00:06:32] accelerated capacity addition, enabled transparent price discovery and most importantly
[00:06:38] provided critical signals to the sector and policymakers. With India now,
[00:06:43] steadfast in our journey towards becoming a net zero, M-2070, we re-reheat our commitment
[00:06:50] to drive this transition towards sustainability. IEX has created a green market in the country
[00:06:56] through innovative products such as renewable energy certificates,
[00:07:00] energy-saving certificates, green day head market and green term head market.
[00:07:04] These markets have access to a motivator for renewable rich states to generate
[00:07:09] beyond obligations as they now have an avenue to sell surplus power and generate revenue out of that.
[00:07:17] Our green models allow generators to adopt a part market and part PPA model or even a comprehensive
[00:07:23] market model. We are confident that green markets will accelerate renewable capacity addition
[00:07:29] in the country. Since IEX believes in walking the top, we are India's first carbon neutral power
[00:07:35] exchange. A resilient and sustainable power sector will be key to achieve India's vision of
[00:07:42] becoming 5 trillion US dollar economy by 2030. A conducive policy ecosystem will accelerate
[00:07:49] India's energy transition towards a green and inclusive economy.
[00:07:54] And power exchanges will have a much larger role to play in catalyzing this transition through
[00:07:59] the efficient and competitive mechanisms.