Why is Karnataka India’s Leader in Renewable Energy Generation As Well As Adoption? A Look at Key Industries Paving the Way for Energy Transition in the State
4PEL Staff
June 2024
KARNATAKA – INDIA’s LEADER IN RENEWABLE ENERGY ADOPTION
Karnataka stands among the country's top five states in Power Generation, with a remarkable 52% of its power needs met from Renewable sources including Solar, Wind, Hybrid, Biofuel, and mini-Hydro projects. The state's installed capacity of 16.4 GW from RE includes 8.3 GW from Solar and 5.3 GW from Wind projects. Notably, Karnataka is also home to the world's second-largest solar park, a massive 2,000 MW solar power park in Pavagada, Tumkur, established in 2018.
The Government aims to incorporate another 10 GW of Renewable Energy within the next five years. They have launched the Karnataka Renewable Energy Policy 2022-2027 for making the sustainability journey seamless. The State is also home to some of the country’s biggest names in technology, manufacturing and automation: as industry booms, one of the easiest ways for businesses to keep their Carbon emissions in check is by switching to renewable energy via the Open Access route. Let us quickly analyse the benefits of the same.
HOW DOES PROCUREMENT OF SOLAR OR WIND POWER VIA OPEN ACCESS WORK?
Many industries today aim to lower their Cabon footprint and make strides towards procuring 100% renewable energy for their operations. Off-site RE solutions can help them achieve these sustainability goals, while ensuring guaranteed savings for every unit of clean power purchased.
Off-site solar or wind energy via the Open Access network uses grid infrastructure to transmit clean power generated at a different location to industries that have bulk energy requirements, but no idle roof or ground space for an RE plant within their premises. This is where 4PEL’s grid-connected Open Access plants offer the ideal solution. Our clients rely on clean energy to not just save on costs but also to help meet their RPOs and long-term energy transition goals.
BENEFITS OF RENEWABLES TO C&I CONSUMERS IN KARNATAKA
30-50% Cost Savings on Power Tariffs
Renewable energy prices have been decreasing significantly over the last few years, making it a cost-effective option for businesses in Karnataka. According to the International Renewable Energy Agency (IRENA), the cost of solar power has decreased by 89% in the last ten years, while the cost of wind power has decreased by 70%.
Reduction in Carbon Footprint
Switching to RE is the most effective way for businesses to reduce their carbon footprint. Interestingly, every MW of solar energy consumed results in
- ~1,400 tonnes of reduced carbon dioxide (CO2) emissions
- ~700 tonnes of reduction in other greenhouse gases (GHG) emissions
- offsetting Carbon equivalent to planting 63,000 Trees
- conserving nearly 32.5 lakh litres of Water
By switching to Renewable Energy, businesses can demonstrate their commitment to Sustainability and Social Responsibility, which in turn can help enhance their brand reputation and attract environmentally conscious customers and investors.
WHY IS KARNATAKA FAVOURED BY BOTH DEVELOPERS AS WELL AS COMMERCIAL & INDUSTRIAL BUSINESSES FOR ENERGY TRANSITION?
Geographical Factors: Karnataka boasts favourable climate conditions for renewable energy projects, with approximately 240 to 300 sunny days annually and excellent solar radiation. The state's geographical features further enhance its renewable energy potential:
- Coastal Plains: Karnataka's coastline along the Arabian Sea experiences consistent wind speeds, making it suitable for wind farms.
- Western Ghats: The Western Ghats Mountain range channels strong winds through mountain passes, providing ideal locations for wind farms.
Corporate Infrastructure: Karnataka's vibrant IT and manufacturing sectors generate significant demand for renewable energy, making it an attractive hub for RE projects
Favourable RE Policies of Karnataka: The Karnataka Renewable Energy Policy 2022-2027, the first of its kind in the southern states of India, offers various incentives and favourable policies to promote renewable energy development:
Incentives for Focus Markets: Karnataka provides incentives for energy sale, land, connectivity, and more.
- Up to 100% exemption on stamp duty and 100% exemption on electricity duty for 8 years for MSMEs
- Up to 100% reimbursement on land conversion fee
- Low concessional registration charges of 0.1%
Furthermore, Karnataka is set to introduce peer-to-peer trading of solar power generated through rooftop photovoltaic systems, enhancing the state's renewable energy ecosystem.
COMPANIES LEADING THE FRAY ON RENEWABLE ENERGY PROCUREMENT IN KARNATAKA
Several companies have committed to renewable energy procurement in Karnataka. For instance, Infosys, a global leader in IT services, has set a target to become carbon neutral by 2022 and procure 100% of its electricity from renewable sources. Similarly, Walmart, the world's largest retailer, has committed to sourcing 50% of its electricity from renewable sources by 2025, with a focus on wind and solar power.
Other notable companies that have committed to renewable energy procurement in Karnataka include Amazon, IBM, Mahindra & Mahindra, and Tata Motors.
FOURTH PARTNER ENERGY’s OPEN ACCESS SOLAR & WIND ENERGY FOOTPRINT
Fourth Partner Energy is India’s leading Renewable Energy solutions company – with a vast network of Solar, Wind and Hybrid parks across the country. In Karnataka alone, 4PEL has nearly 400 MW of solar and wind capacities that are in various stages of execution.
 |
 |