Amid climate change and soaring pollution rates, a growing number of countries reject fossil fuels and foster the adoption of reusable energy sources. India is one of the fastest developing nations on earth, whilst being the second most populous one.
The rate of industrialization and growth is causing a lot of problems in major cities across India. Unregulated cars and manufacturing plants, along with other factors, in New Delhi, Mumbai and other major cities are causing a major issue of extremely polluted air. Indian cities have been named as some of the most polluted consecutively for the past few decades. Moreover, the nation is experiencing a growing need for more and greener energy. With the soaring economy, people consume more electricity and other resources. This is why the country is focusing on developing green energy sources.
Enel Green Power enters India with significant experience
Enel Green Power is one of the most prominent companies in the field, based in Rome, Italy. It has over 12 years of history and unites green electricity-producing plants in Europe, Asia, the Americas, and now India. The company’s experience and knowledge in this rather a new field is big, making it a perfect fit for such a project in India. As the country is making its first baby steps towards the development of green energy infrastructure, the experience of such firms is of utmost importance, ensuring the high quality of work and the good use of the investment.
Enel Green Power can surely claim to be a highly respectable company and its stocks, referred to as azioni Enel in Italy, are proving it right. The company’s value and its stock popularity have soared rapidly over the past few years, amid the increased number of green projects across Italy. The southern European nation is one of the pioneers in the industry with a high number of green energy projects. Originating from Rome, Enel Green Power has extensive experience within Italy and beyond.
The company did not compete with its original name and representation, i.e. Enel Green Power Italy, but the subsidiary called the EGP India. With this, the company guaranteed a 25-year energy supply contract for a 420 MW plant which is expected to be located in the Indian state of Rajasthan. The project falls under the ninth tranche of a 2 GW nation-wide solar energy megaproject, executed by the governmental agency called Solar Energy Corporation of India Limited (“SECI”).
The 420 MW solar plant is a major project and requires extensive construction process, adhere to high construction standards and safety measures. The overall investment of the project is expected to hit an estimated $180 million. The construction will last until next year with the plant expected to be opened at the end of 2021. According to the energy supply contract, the firm should supply the Solar Energy Corporation of India with green, renewable, and sustainable energy for 25 years from the opening of the plant. The energy will be allocated to different areas across the region, as the plant will generate an estimated 750 GWh of energy each and every year. The project will ensure that more people and businesses have access to green and renewable energy in India. Moreover, the important part of the project also is that after the launch, the plant will reduce the annual CO2 emissions by 681,600 tons of CO2.
Why is India investing heavily in renewable and green energy sources?
As mentioned earlier, the Indian government, along with many others, is trying to reduce emissions. The trend is alarming in India as thousands of people die each and every year from breathing poor quality air that affects the body. The problem is deep-rooted and will not be solved without a radical green change that the government is trying to bring. 21 out of 30 cities with the worst air pollution in the world are located in India. This number clearly shows how bad the situation is across the nation, home to more than 1.3 billion people.
India is trying to meet its renewable energy goals, set at the local level, as well as through the Paris Climate Change Agreement, which the Indian government has already ratified. As one of the biggest emitters globally, the country is expected to take radical steps in efforts to reduce CO2 emissions and their effects on India and beyond.
By 2022, India is planning to meet its first milestone by generating 100 GW of Solar and 60 GW of wind power. This will cause a major adaption and lots of investment throughout the next 2 years as the current rate today stands at approximately 35 GW of solar and roughly 38 GW of wind power.
As of now, Enel Green Power through its subsidiary EGP India is one of the largest renewables companies in India. It operates a whopping 172 MW wind capacity in Gujarat and Maharashtra, generating over 340 GWh every year.