Decoding India’s Green Energy Landscape after COP28

Investing in Green Energy

What is COP28? 

UN Climate Change conferences (or COPs) take place every year and are the world’s only multilateral decision-making forum on climate change with almost complete membership of every country in the world. COP 28 stands for the 28th meeting of the Conference of the Parties (COP) to the United Nations Climate Change Conference taking place in Dubai, United Arab Emirates from November 30 2023 until December 12 2023.

To put it simply, the COP is where the world comes together to agree on ways to address the climate crisis, such as limiting global temperature rise to 1.5 degrees Celsius, helping vulnerable communities adapt to the effects of climate change, and achieving net-zero emissions by 2050. More than 70,000 delegates are expected to attend COP28, including the member states (or Parties) of the UN Framework Convention on Climate Change (UNFCCC). Business leaders, young people, climate scientists, Indigenous Peoples, journalists, and various other experts and stakeholders are also among the participants.  

Major decision for Energy Sector

Facing climate pressure, nations at COP28 pledged to boost renewable capacity from 3,400 GW to 11,000 GW by 2030 including expanding nuclear and choking off coal funding. 

India pledged to significantly increase solar, wind, hydro, and biofuel generation, aiming for 50% renewable electricity by 2030 and weaning itself off coal by 2030. 

Here are the emerging green energy stocks that may benefit from India’s net zero emission objective. 

1. NTPC Ltd:
   Market Capitalisation: Rs 2,94,000 crore.
   NTPC is India’s largest power utility with an installed capacity of 73,824 MW (including JVs), and plans to become a 130 GW company by 2032. NTPC plans to add 60 GW of renewable energy capacity by 2032.
2. Adani Green Energy Ltd:
   Market Capitalisation: Rs 2,40,000 crore.
   Adani Green Energy is the leading renewable energy producer in India and aims to inject an extra USD 22 billion into expanding its capacity more than fivefold by 2030. Their goal is to construct a 45 GW renewable energy capacity by 2030.
3. Tata Power Company Ltd:
   Market Capitalisation: Rs 1,07,400 crore.
   Tata Power is primarily involved in the business of generation, transmission and distribution of electricity and is India’s largest vertically integrated power company. It is also engaged in the manufacturing of solar panels and next-gen power solutions like electric vehicles, charging solutions and home automation to integrated energy solutions. It aims to produce electricity completely through renewable sources.
4. JSW Energy Ltd:
   Market Capitalization: Rs 70,000 crore.
   The company is amongst India’s leading independent power producers. The company sells power through a combination of long-term and short-term power purchase arrangements. JSW Energy has diversified sources of power generation that range from thermal to renewable sources such as hydro, wind and solar. Currently, it has a total thermal capacity of 3,858 MW out of which 3,158 MW is operational and 700 MW is under construction. It has a renewable capacity of 5,934 MW out of which 3,613 MW is operational and 2,321 MW is under construction.
5. Suzlon Energy Ltd:
   Market Capitalisation: Rs 52,000 crore.
   The Suzlon Group is one of the world’s largest providers of renewable energy solutions, with more than 20 GW of wind energy capacity built across 17 countries. Suzlon is also India’s leading wind energy service provider, having a service portfolio of more than 14 GW of wind energy assets.
6. SJVN Ltd:
   Market Capitalisation: Rs 36,700 crore.
   SJVN Limited is an Indian public sector undertaking which is engaged in the business of hydropower generation and transmission. It is a joint venture between the Government of India and the Government of Himachal Pradesh. SJVN is one of the largest hydropower companies in India and is committed to generating clean and green energy. The company’s aim is 12,000 MW by 2026 and 50,000 MW installed capacity by 2040.

Check: Top 10 Performers in Power Generation & Distribution sector

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions