Renewable Energy Consumers Seek Stable Policies as Green Power Demand Surges

India’s leading renewable energy consumers are increasingly prioritising reliable clean energy supply over merely procuring renewable capacity, as data centres and manufacturers pursue aggressive decarbonisation goals while seeking protection against rising power costs, industry leaders said during a panel discussion on accelerating renewable energy adoption in northern India. The event was organised by AMPIN Energy Transition and FICCI in New Delhi. 

The discussion brought together representatives from major energy-consuming sectors, financiers and international investors, who highlighted battery storage, hybrid renewable energy solutions and regulatory certainty as key enablers of the next phase of India’s energy transition.

Demand Shifts Towards Round-the-Clock Green Power

Sindhu Sharma, ESG Head at Nxtra by Airtel, said the data centre industry’s renewable energy procurement strategy has evolved significantly over the years. While companies initially focused on sourcing solar power, changing regulations and growing sustainability commitments are driving demand for more comprehensive clean energy solutions.

Sharma said customers are now increasingly looking for assured renewable energy delivery and hourly matching of power consumption, rather than simply contracting solar generation capacity. She noted that rapidly expanding data centre operations make long-term demand forecasting challenging, requiring greater flexibility from renewable energy developers.

A similar trend was highlighted by Akhil Agarwal, Head – Power Management & Renewable Energy at ST Telemedia Global Data Centres, who said the company has progressively moved from solar-only procurement to wind-solar hybrid projects integrated with battery energy storage systems.

According to Agarwal, ST Telemedia has already achieved nearly 70% renewable energy consumption across its operations and is targeting carbon-free power for its data centre portfolio by 2030. The company currently uses a combination of open-access renewable power, green tariffs and renewable energy certificates to meet its sustainability objectives.

Manufacturing Sector Sees Cost Competitiveness 

Ashish Saxena, Joint President – Packaging Films Business at Uflex, said renewable energy adoption is being driven by a combination of cost competitiveness, sustainability commitments and increasing pressure from global customers.

Saxena noted that as India positions itself as a manufacturing hub under the “China Plus One” strategy, industrial consumers are under growing pressure to improve competitiveness while simultaneously reducing their carbon footprint. He added that regulatory predictability would play a critical role in accelerating renewable energy adoption among commercial and industrial consumers.

Sharada Prasad, General Manager at Samsung India Electronics, emphasised the role of distribution utilities in facilitating renewable energy adoption and bridging the gap between policymakers and end consumers.

Prasad said discoms often act as the primary interface for customers seeking information on rooftop solar, net metering, electric vehicle charging infrastructure and renewable energy incentives. He stressed that policy frameworks must be more comprehensive and clearly define stakeholder responsibilities to ensure smoother implementation of energy transition initiatives.

Financiers Seek Greater Standardisation

From the financing perspective, Anoop Sadani, National Head – Project & Structured Finance at Aditya Birla Finance Ltd., said commercial and industrial renewable energy projects continue to attract strong lender interest, although challenges remain around project execution, land acquisition, connectivity approvals and evolving state-level regulations.

Sadani also called for greater standardisation of power purchase agreements across the industry, noting that varying contractual structures often increase financing complexity and project risks.

Global Investors Remain Bullish on India

Jun Hirayama, General Manager at Sumitomo Corporation India, said India remains one of the most attractive renewable energy investment destinations globally due to its large market size, supportive regulatory framework and openness to private sector participation.

Hirayama noted that many Japanese companies operating in India have ambitious decarbonisation targets and are actively seeking renewable energy solutions. He identified the operational expenditure (OpEx) model as a particularly attractive approach, allowing corporate consumers to adopt renewable energy without significant upfront capital investments.

Call for Policy Stability

A common theme emerging from the discussion was the need for greater policy certainty. Industry participants urged regulators to provide longer-term visibility on renewable energy regulations, open-access policies and energy storage frameworks to help businesses plan investments with confidence.

The panel broadly agreed that while the economics of renewable energy continue to improve, the next stage of growth will be driven by hybrid renewable projects, battery storage integration and regulatory clarity that enables both consumers and developers to pursue long-term decarbonisation strategies.