New Delhi, Dec 24 (PTI) A cohesive national and state-level regulatory framework that gives investors long-term confidence is essential for the country to meet its non-fossil goals, according to a CRISIL expert.
The government has an ambitious target of having 500 GW non-fossil fuel-based power generation capacity by 2030.
Non-fossil fuel capacities include sources like solar, wind, biomass, waste-to-energy, hydro projects etc.
"Achieving India's 500 GW non-fossil target will require a cohesive national and state-level regulatory framework that gives investors long-term confidence," a statement issued by FICCI said, quoting Ashish Mittal, Director, Energy & Commodities, CRISIL.
Cap-and-floor mechanisms, viability gap funding and storage-as-a-service models will be critical to de-risk investments and unlock private capital at the scale India now needs, he said at FICCI's India Power and Energy Storage Conference on Wednesday.
On energy storage, Ashok Sharma, the Deputy Managing Director, State Bank of India, said energy storage is capital-intensive, with batteries forming a majority of project costs, and financing frameworks must evolve to reflect the unique risk and revenue profiles of these assets.
"India must pursue storage manufacturing with urgency while remaining technology-agnostic, leveraging batteries, pumped storage and emerging solutions to build long-term, resilient infrastructure," he said.
The two-day conference brought together policy makers, regulators and industry executives to chart a roadmap for a sector grappling with the complexities of renewable integration amidst managing thermal assets.
Some of the challenges being faced by the industry include signing of power purchase agreements (PPAs) for already bid out projects, clearances for projects, among others.