Reliance has set out on an ambitious journey to become Net Carbon Zero by 2035. Our New Energy business is far more ambitious, far more transformational, and far more global in scope than anything we have ever done before. We firmly believe that as one of the biggest energy markets in the world, India will play a leading role in transforming the global energy landscape.
Strategic Objective
Scale up New Energy and New Materials businesses, providing affordable clean energy alternatives
Reliance New Energy: Converting Photons to Green Electrons and further to Green Molecules leading to reduction of carbon footprint.
Our aim is to maximise RE generation at an optimal cost so as to increase Netbacks for RE.
Most of manufacturing giga-factory would be at Jamnagar while RE development, production of GH2 and its derivatives would be at location based availability of suitable land, evacuation infrastructure and requisite demand.
Source: BP Energy Outlook, Bloomberg, CEA, McKinsey, PIB, IEA, Ammonia Technology Roadmap, Broker Research
Indian renewable energy sector is the third-most attractive renewable energy market in the world (according to EY Renewable Energy Country Attractiveness Index).
India targets to commit 50% of cumulative generation capacity from non-fossil-based energy sources by 2030 and reduce its emission intensity of GDP by 45% by 2030 vs the 2005 baseline.
The principal driver and enabler for India’s Net Zero emissions goal is reducing dependence on imports and building supply chain resilience, while minimising carbon footprint.
The government has put policies and various fiscal incentives in place to encourage the demand and supply of green energy transition technologies in various sectors.
Global Energy Demand
Global energy demand is likely to increase to ~204,000 TWh in 2050.
Renewables are expected to have significant share of incremental energy demand requiring multifold increase in current installed capacity.
Global installed renewable capacity is around 3,300 GW, expected to reach ~11,000 GW by 2030.
Solar and Wind energy generation are expected to account for nearly 96% of new capacity additions, in the foreseeable future.
Battery Energy Storage System (BESS) capacity is expected to reach 945 GW by 2050 compared to 52 GW in 2022 Hydrogen demand is expected to increase from current 90 MMTPA to 530 MMTPA by 2050.
Ammonia is on the path to become a 550 MMTPA market by 2050 compared to 183 MMTPA today.
India Energy Demand
India’s energy requirement is expected to grow to 15,000 TWh by 2030 and 26,000 TWh by 2050.
India targets to achieve 500 GW of RE capacity by 2030, of which 280 GW would be from Solar.
Government’s PM-Surya Ghar Muft Bijli Yojana (~` 75,000 crore outlay): for rooftop solar with free electricity up to 300 units/month for one crore households.
PM Kusum Yojana for farmers: Target 10 GW RE, to replace off-grid diesel pumps and solarisation of gridconnected pumps.
India’s Energy storage requirement is
estimated at ~ 74 GW (47 GW BESS
and 27 GW PSP) with storage of
~411 GWh (BESS ~236 GWh and PSP
~175 GWh)
by 2031-32
Uptake of EVs is projected to create battery demand of ~100 GWh / year by 2030.
Residential, C&I, Telecom towers and DG set replacements to drive Stationery Battery Pack demand ~30 GWh/year by 2030.
India targets 5 MMT GH2 by 2030 with a mission to become a global hub of GH2 and its derivatives.
Source: BP Energy Outlook, Bloomberg, CEA, McKinsey, PIB, IEA, Ammonia Technology Roadmap, Broker Research
We have made significant progress in establishing factories that will be part of our Integrated Solar PV Manufacturing. New Energy will be commissioning its first train of Module and Cell Manufacturing in FY25. Solar panels manufactured in Jamnagar have obtained BIS certification.
Parallelly, work on RE Development has commenced and Reliance has been allotted land in Gujrat. We aim to become largest RE Developer in India.
We initiated participation in RE PPA with the first PPA signed with MSEDCL for 128 MW for 25 years.
50 MWh per year capacity pilot line has been setup for manufacturing Li Battery cells, through Lithium Werks, and can be scaled up for commercial scale production.
Reliance has qualified for the government’s Performance Linked Incentive (PLI) scheme for Manufacturing Electrolysers of 300 MWe annually and Green Hydrogen Production for 90 kTPA. This is in addition to PLI awards for Solar PV (Polysilicon to Module) and Advanced Chemistry Cells (ACC) received in the previous year.
Reliance signed MOU with the Government of Maharashtra for 100 kTPA GH2 production, with total projected investment of ~` 15,000 crore and employment generation of ~4,000 (direct and indirect).
Reliance signed an MOU with Brookfield for onshore renewable power and decarbonisation equipment manufacturing in Australia.
Fossil fuels have historically fed India’s power requirements. Structural inefficiencies combined with rising costs of fossil fuel has resulted in expensive power for commercial and residential customers – average tariff of ~ ` 10/ kWh (US$ 12c/ kWh). Therefore, it is not feasible for India to keep relying on fossil fuels for its growth. The use of fossil fuels-based energy increases dependence on imports and results in drain of foreign exchange.
Stable and round-the-clock
cost-efficient green power
is the need of the hour. India
needs to solve this problem to
maintain its growth trajectory
and reach US$ 32 trillion GDP
by 2047.
Over the next 12 months,
our focus is to bring new
energy manufacturing
facilities
on-stream, operate
them efficiently and, start
developing RE generation
projects. Simultaneously, we
would develop supply chain
locally for self-sufficiency and
reduce the reliance on imports.
We aim to be the partner of choice for leading global climate technology and product companies and develop business model which is flexible and adaptable to different technologies and future proofed to be always lowest life cycle cost and best in class.
