India’s Suzlon Energy resolution plan to be implemented today
A new debt resolution plan for the Indian wind turbine giant Suzlon will be implemented today after delays caused by the COVID-19 pandemic.
The resolution’s approval comes just as India has ramped up investment in green energy. Renewable energy manufacturer the Adani Group recently secured a $6 billion contract to develop an 8 GW solar energy grid, one of the largest solar projects in the world. With high levels of average sunlight and largely untapped wind and hydro resources, the nation does not lack for clean energy potential.
Prime Minister Narendra Modi’s government has pledged that renewables will transform India into a global leader in clean energy by 2022. This complements Modi’s concurrent “Make in India” policy to boost domestic manufacturing to compete with China. Nevertheless, there are significant challenges: India would have to double its green energy production in the next two years to realise the PM’s vision, which is unlikely to occur in such a short span of time.
India’s ambition to reach 450 GW renewable capacity by 2030 might also be in jeopardy unless significant financial regulatory reforms placate potential foreign investors. Local energy distributors will likely require increased financial security, particularly after the nation’s dramatic pandemic-induced demand shock. With Modi pursuing a post-lockdown reform scheme, it is possible that necessary changes in this sector will materialise within the next year.
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