Business

Adani, Siemens among players set to benefit in a post-pandemic economy

The novel coronavirus has exposed some serious shortcomings of conventional energy systems. Due to the pandemic-led recession, the market prices of traditional fuels have grown even more volatile, necessitating a transformation in the energy sector worldwide.

Although investments in various markets, renewable energy (RE) included, have seen a dip, experts predict a strong performance for renewables in the post-pandemic world. The Indian RE sector has also witnessed significant changes, with big names like Reliance Industries Limited (RIL) entering the green market for the first time. Established players like ReNew Power, Adani, Siemens and Tata Power are also gearing up to meet the challenges of a post-pandemic economy.

Despite a lull in the market, players like Adani and ReNew Power have been making steady progress throughout the COVID crisis. Adani completed the acquisition of Softbank Energy for a record $3.5 billion which helped it overhaul the target of 25GW renewable capacity. The target was achieved by the Group four years ahead of its schedule. In addition, the Group also doubled its solar cell and module manufacturing capacity to 4GW in the last fiscal.

Another player who stood out is ReNew Power. The Goldman Sachs-backed RE producer issued green bonds worth $585 million in April this year. Proceeds from the bonds would be used to clear debt and finance future projects in India. Other than ReNew Power and Adani, Siemens is another important stakeholder that holds a major share in the Indian renewables market.

Despite enjoying a lion’s share of the market in India, Siemens Gamesa has had a rough quarter as it was hit by heavy losses. Volatility in other markets had a hand in the frustrating performance by the turbine manufacturer. Although revenues increased by 12 per cent YoY, it reported a net loss of €314 million in the third quarter. Nevertheless, CEO Andreas Nauen was positive that the company would scale the difference and get back in the green, courtesy of its order backlog – which has seen a 3 per cent YoY growth and is currently valued at €32.6 billion.

The pandemic has highlighted the vulnerabilities of conventional energy sources and the market volatility that comes with it. Alternative energy sources have instead captured the imagination of investors and companies, who see new avenues for growth in them. The actions of players like Adani, Siemens and ReNew Power are consistent with such a realization and will be instrumental in India’s transformation towards becoming a global leader in renewable energy.

Andrew s

Andrew has been in the online publishing industry. After receiving his degree in professional journalism from the Indian Institute of Journalism and New Media, he contributed to multiple websites as a freelance writer and feature editor. Mostly, Andrew tackles controversies and theories that lead to a specific conclusion that either debunk or justify a particular claim. Further, Andrew participates in social developments that aim to simplify every individual's way of life and fight for peace. He is the new Editor-in-Chief of Pressroom Today.

Share
Published by
Andrew s

Recent Posts

Bharat Club App Review | Play Games & Earn ₹500 In APK

Do you want to earn a side income? This time the side income trend is…

1 month ago

IPL 2024 Kicks Off In Style: All-Star Teams Prepare to Play for the Cup

The popular sports league, which garners significant viewership from India and abroad, has initiated its…

3 months ago

Lok Sabha Elections 2024: India’s Future Awaits ‘Saath Phase Paar’

The total number of registered voters is more than the combined population of all European…

3 months ago

Scam 2024: The Electoral Bonds Scheme And Its Top Contributors Come to Light

Who paid whom, how much and WHY? These are the general questions that everyone asked…

3 months ago

Centre Notifies Rules for CAA: Stirs the Indian Political Arena Across Different Levels

The new legislation aims to uplift persecuted minorities by granting them Indian citizenship based on…

3 months ago

Centre Notifies Rules for CAA: Stirs the Indian Political Arena Across Different Levels

The new legislation aims to uplift persecuted minorities by granting them Indian citizenship based on…

3 months ago