The role of energy infrastructure will be crucial in sustaining growth.
Amit Jain
Global CEO, Sterling and Wilson Renewable Energy Group
How do you assess India’s energy infrastructure growth and ongoing developments?
India’s energy infrastructure is rapidly evolving to meet rising demand due to economic growth and urbanization. In 2023, India became the world’s fastest-growing major economy, with a 7.8% GDP growth rate. Energy demand is expected to outpace all other regions by 2050, putting significant strain on its system. To manage this, India is diversifying its energy sources, with a strong focus on decarbonization. Efforts such as increased investment in renewable energy projects, grid upgrades, and decarbonization initiatives are key components in modernizing India’s energy infrastructure.
India has committed to achieving net-zero carbon emissions by 2070 and has catalyzed several significant initiatives aimed at decarbonization and energy transition. The government’s National Infrastructure Pipeline (NIP) outlines a projected investment of over Rs 111 lakh crore by 2025, with 24% allocated for energy projects, including renewable energy infrastructure development. This will enhance grid resilience and improve power transmission networks. The green hydrogen is also expected to play a crucial role in diversifying India's energy mix, with a production target of 5 million metric tonnes by 2030. Additionally, India's focus on battery energy storage systems (BESS) is intensifying. The government also plans to deploy large-scale storage to ensure grid stability as renewable energy capacity grows, with 4 GWh of energy storage set to be installed by 2026. This multi-pronged approach to energy infrastructure development will enable India to meet its growing energy demands while transitioning to a cleaner, more resilient energy future.
What is the latest scenario in India’s renewable energy sector?
As of 2024, India has made significant strides in renewable energy, with solar and wind energy dominating its power generation mix. The country’s target is to achieve 500 GW of renewable energy capacity by 2030. Indian government had announced plans to seek bids for 50 GW of renewable energy capacity each year for five years, from FY24 to FY28, and significant progress has been made in FY24 itself. However, challenges like grid integration, financing, and land availability remain. Continued government incentives, policy support, and technological advancements are expected to drive further growth in this sector.
What are the emerging opportunities for solar energy in India? How are you expanding in solar EPC?
The solar energy sector in India is witnessing unprecedented growth, especially with the push for achieving 500 GW of renewable energy by 2030. Large utility scale solar parks, decentralized rooftop solar installations, and innovations like floating solar projects are emerging opportunities. Further, opportunities in battery storage systems have begun to shape up in a meaningful manner.
SWREL expects a steady increase in the order book over the coming years, driven by strong domestic demand and expanding opportunities in international markets. We are already ranked as one of the leading solar EPC players in the country with a portfolio exceeding 18 GW, and we have also recently bagged the EPC for the largest BESS project awarded in the country till date.
What is your vision on India as the world’s third-largest construction market? What will be the role of energy infrastructure in this?
With urbanization accelerating, the role of energy infrastructure will be crucial in sustaining growth. Energy infrastructure will not only power new construction projects but also facilitate the transition towards greener buildings and smart cities. Solar power, energy storage systems, and decentralized energy grids will play pivotal roles in ensuring that the construction sector meets sustainability goals.
What is your Mission 2025 for the company? What are your growth plans?
Over the next few years, SWREL anticipates continuing to provide an impetus to the EPC segment with a focus on expanding capacity in large-scale projects. As of March 2024, the company had achieved a strong orderbook with a steady inflow of orders, and the pace of execution has continued to step up several notches. We anticipate FY25 to be stronger than FY24 in terms of order inflow underscoring the immense opportunities and rising demand within India's market. We have been scaling up to meet the growing demands.
2025 will be a pivotal year of execution for us with a large third-party domestic orderbook, and the key Nigeria order also likely to be under execution by then. We also anticipate being very busy with a pickup in the pace of RIL’s greenfield RE projects taking shape.
While we have witnessed significant growth in our domestic order inflow, we will continue to maintain a strong international footprint through various ongoing global projects. Our strategic approach enables us to effectively balance both spheres, continuously utilizing our expertise to serve international markets while actively leveraging the vast untapped potential within India’s expanding infrastructure landscape.
