How Foreign Businesses Can Enter in Indian Cleantech Industry
Depleting natural resources, global climate change and the resolution by nations to make a difference has led to the widespread adoption of renewable energy sources. This has given rise to the cleantech industry, which, as per industry experts, globally will surpass the oil market’s value and rise to USD 870 billion by 2030.
Emerging businesses worldwide can take advantage of this sunrise sector, which is currently high in demand, and expand their operations to new markets. Moreover, they can also opt for cleantech energy consulting services, to gain an edge over the competition.
Cleantech Industry: An Overview
Cleantech or the clean technology industry involves companies that aim to reduce their impact on the environment by using sustainable means for developing their products and services. These may include the use of renewable energy sources, innovative methods of recycling, and more.
Some of the top trends in this industry are:
- Clean Energy
Governments and businesses around the world are putting more focus on adopting clean or renewable sources of energy. They include solar, hydrogen, tidal, wind, geothermal, etc. Unlike fossil fuels, energy generated from these sources does not pollute the environment and is not limited in availability. Thus, adopting clean energy is the best way to meet growing energy demands and run eco-friendly operations at the same time.
- Electric Vehicles
Electric vehicles are perhaps one of the hottest trends in the cleantech industry. The governments of several countries have started offering subsidies to their citizens for adopting electric vehicles. They are an effective way to reduce the dependence on petrol-run vehicles and curb environmental pollution.
- Low-Carbon Construction
Low-carbon construction entails the use of materials and processes that can make the building process less polluting and sustainable. They may include plant walls, green insulation, bamboo flooring, hemp-based concrete, exteriors that help keep the building cool, etc. These measures can effectively replace traditional methods of construction, thereby reducing their negative impact on the environment.
- Green Materials
Nowadays, fossil fuel-based products comprise a significant portion of the world’s generated waste. Thus, companies are developing green materials in order to provide a sustainable alternative, for instance, bio fibers and bioplastics. They are made from food and agricultural wastes and do not produce any toxic byproducts. These effectively reduce the waste generated from textiles and single-use plastics.
- Energy Production from Waste
Garbage disposal and waste management is a major problem around the world. Thus, businesses are innovating safe and sustainable ways to manage waste by devising waste-to-energy solutions. These include gasification, incineration, anaerobic digestion, pyrolysis, etc. These processes will help produce energy from waste, thus providing dual solutions for waste management and energy production.
- CCUS
CCUS or carbon capture, use, and storage entails capturing carbon emissions to store and upcycle them in order to reduce environmental impact. It involves the clean disposal of industrial carbon dioxide by using phytoplankton-based solutions and artificial photosynthesis via biosolar leaves. Startups are currently devising methods to use upcycled carbon for developing materials like biochar and carbon-based plastic.
According to industry experts, the adoption of cleantech on a global scale will create a high demand for EV batteries, solar panels, heat pumps, wind turbines, etc. This, in turn, will create almost 14 million jobs in the manufacturing sector by 2030.
Growth of the Indian Cleantech Industry & How Companies Can Benefit from It?
According to reports, India ranks 2nd among developing nations that are actively transitioning to clean energy. Moreover, this country occupies the 5th rank when it comes to installed renewable energy capacity. It is also the 4th most prospective market for the renewable energy sector.
A major factor behind this is India’s growing economy, which is increasing the demand for renewable energy and its associated infrastructure. By 2030, this country plans on meeting almost 40% of its total energy requirement from renewable sources. Furthermore, it is also planning on increasing its energy storage capacity to 500 GW within the period.
Apart from this, the government is taking active steps to increase the production of non-renewable energy in the country. In the Union Budget 2023-24, the initiation of a Sovereign Green Fund has been announced that will be used for financing green hydrogen, wind, and grid-connected solar energy projects.
Moreover, to deal with the seasonal variability of renewable energy generation, the authorities are also putting increasing focus on battery energy storage systems. Apart from this, the government has also declared a product-linked incentive (PLI) scheme for manufacturing batteries. This was done to reduce the country’s dependence on lithium-ion cell imports from Taiwan and China, thereby reducing electric vehicle manufacturing costs.
When it comes to promoting electric vehicle adoption, the government has also decided to extend its Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme till 31st March 2024. This will aid the adoption of electric vehicles among people, thus creating higher demand.
All these factors indicate the massive scope of the Indian Cleantech Industry. Thus, foreign firms can consider entering this market in order to expand their business. However, to get the correct guidance while entering such a vast market like India, experts recommend opting for cleantech energy consulting.
How Can Renewable Energy Consulting Services Help Global Businesses?
To enter the Indian cleantech sector, foreign firms have to abide by several legal and regulatory compliances. Moreover, in order to successfully occupy a significant share of this sector, they need in-depth knowledge of the ongoing trends, along with consumer preferences. Under such circumstances, teaming up with firms offering renewable energy consulting and services can be useful.
Consulting firms like Tecnova can help foreign businesses devise a successful entry and expansion plan. They offer services of site selection, mergers, and acquisitions, partner search, retail rollout, executive search, etc., which can help companies start their business operations in a vast country like India, without much hassle.
Reference
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