“Karnataka’s Leadership in Renewable Energy & Electrification : Key Drivers for Sustainable and Industrial Growth”

Bengaluru, 07 August 2024:

CII Karnataka organized annual Energy Transition Conference “Driving Sustainability: Renewables, Green Hydrogen and Electric Mobility” today at Bengaluru. Addressing the inaugural session Mr Gaurav Gupta, IAS, Additional Chief Secretary, Energy Department, Water Resources Department & Managing Director, KPCL, Government of Karnataka, remarked, “Karnataka is leading the way in renewable energy, with 65% of electric energy capacity coming from renewable sources. As a hub for renewable energy, transmission, and investment, we are also pioneering in green hydrogen production with a target of 3 MMTPA and advancing electric mobility to create 1.5 lakh jobs. Our goal is to reduce the cost of green hydrogen production from $5 per kg to $1 per kg, demonstrating our commitment to sustainable and innovative energy solutions.”

Mr Lalit Bohra, Joint Secretary, Ministry of New & Renewable Energy, Government of India, stated, “Providing electricity at a low rate is essential as power demand grows at 8-10%. India stands 4th globally in renewable energy installations, having surpassed 85GW from solar and 46GW from wind. The government has waived inter-state transmission charges, and for the first time, Karnataka has introduced Distributed Renewable Purchase Obligations (RPO). Achieving the 200GW milestone from renewables without fossil fuels and aiming for 500GW by 2030, along with 55GW solar manufacturing capacity, highlights our commitment to a sustainable and energy-secure future.”

“Energy plays a critical role in our lives, offering the opportunity to reduce our carbon footprint, create jobs, and enhance capacity said Ms Gunjan Krishna, IAS Commissioner for Industrial Development and Director, Department of Industries & Commerce, Government of Karnataka. Ms Krishna emphasized on “The transition of energy has two crucial aspects i.e. moving towards renewable sources and decarbonization aiming for 50% installed capacity of renewable energy and to attain net zero by 2070. Achieving our targets hinges on robust policies that support energy transition, increase renewable energy production, promote EV transportation, reduce industrial heating emissions through green hydrogen, and foster green buildings and manufacturing processes. Innovation and technology in the renewable energy sector are vital. We need smarter and greener grids, micro distribution systems, and just transitions. Karnataka’s industrial policy will emphasize green processes in manufacturing to align with these objectives.”

At CII Karnataka, we constantly endeavor to contribute to sustainable economic development. However, to achieve this target, we need to address one of our time’s most pressing topics: climate change and energy security. To create a sustainable energy future, we must develop a strong ecosystem with an efficient and judicious utilization of renewables, green hydrogen, electric mobility and well supported by a robust grid network are prerequisites for a seamless transition. The same is only possible through strategic collaboration and discussion among industry leaders and visionaries. An in-depth dialogue on energy transition will go a long way in making Karnataka a key player in the country’s net zero journey said Mr N Venu, Chairman, CII Karnataka State Council 2024-25 & MD & CEO – India & South Asia, Hitachi Energy.

CII Karnataka whitepaper on Energy Transition in MSMEs was released emphasizing the shift from fossil fuels to renewable energy sources for sustainable economic growth. MSMEs, vital to Karnataka’s economy, face both opportunities and challenges in this transition. Key drivers include supportive policies, economic incentives, technological advancements, and environmental considerations. Opportunities lie in adopting renewable technologies, improving energy efficiency, and accessing green finance, while challenges include high initial costs, limited financing, and technical expertise gaps. Addressing these through enhanced policy support, innovation partnerships, and financial products will be crucial for MSMEs to contribute to Karnataka’s sustainability goals and improve competitiveness.

Energy transition is an inevitable progression towards our target of Net Zero and the government of India is keen to push this by giving right policy support and impetus for the renewable energy industry. However we also need to focus on the infrastructure supporting the clean energy, including transmission and evacuation network ahead in time, which currently lags behind the generation said Mr Shivanand Nimbargi, Co-Convenor, CII Karnataka Energy Transition Panel 2024-25 & Managing Director, Ayana Power

“Globally, India ranks as the 4th largest in renewable energy (RE) installed capacity with over 200 GW installed,” said Mr KP Rudrappiah Managing Director, Karnataka Renewable Energy Development Ltd (KREDL), Government of Karnataka. “Karnataka is among the top 5 states in RE installation, holding the 3rd position in both solar and wind energy. The state has made significant strides in RE capacities, supported by a favorable policy environment. The Energy Conservation (EC) and Energy Efficiency (EE) policy aims to conserve 744 million kWh of electricity, avoiding the addition of 454 MW of fossil fuel-based generation capacity and reducing CO2 emissions by 610,080 tonnes. In the 2024-25 budget, the Government of Karnataka announced the implementation of 40,000 off-grid solar pumps, increasing the state subsidy share from 30% to 50% to encourage renewable energy and boost farmer income.

“Energy transition requires a holistic approach, encompassing generation, transmission, storage, and consumption. This transformation demands collaborative innovation in technology and digitalization to ensure efficiency and effectiveness,” said Mr Akilur Rahman, Convenor of CII Karnataka Energy Transition Panel 2024-25 and Chief Technology Officer at Hitachi Energy.

The conference discussed critical topics including Renewable Energy Generation, the Energy Transition Grid for efficient Energy Evacuation and Transmission, Integration of Renewables to achieve Net Zero Emissions, and the role of Electrification and Digitalization in advancing these goals. Leading industries and institutions including Hitachi Energy; Ayana Power; Greaves Electric Mobility; Elgi Equipments Ltd; O2 Power; Dexler Energy shared and showcased their insights which was attended by over 100 industry CXO’s and stakeholders across sectors.