India has set ambitious climate goals. It plans to quadruple its renewable energy capacity by 2030. As part of its Nationally Determined Contributions (NDCs), it also aims to achieve 40% of its installed power generation capacity from clean energy sources.
But the catch is: India consumes over 35 GJ of energy annually. Since energy demand largely exceeds domestic supply, India also imports energy from other countries. With its vision of Atmanirbhar Bharat, can it achieve its goals while combating the risks of climate change?
In India, the industrial sector accounts for 34% of energy consumption. This includes power companies that need a stable energy supply. Nearly 40% of India’s thermal power plants are in areas of high-water stress and hence have a capacity factor 21% lower relative to plants with better water availability.
As per the G20 Climate Risk Atlas, India's water stress level is expected to remain high (2030-2050) based on climate change projections. So, what are companies doing to run a sustainable business model?
Tata Power’s 4,000 MW Mundra Ultra Mega Power Project in Gujarat is a key example of how companies can manage water better. The project features a seawater reverse osmosis (SWRO) plant with a capacity of 25,200 cubic metres per day. The plant supplies 25.2 million litres of desalinated water daily for various uses. This enables the company to manage its operations sustainably and responsibly.
Many of the fossil fuel-based plants, like Adani Power’s Mundra and Udupi units, are in climate-sensitive coastal areas, making them more prone to cyclones, sea-level rise, and extreme weather events. Therefore, Adani Power has taken several steps to protect its business interests.
The company has recognised the threat posed by global warming-induced sea level rise. Therefore, it has raised the finished floor level of the plant to 10 meters above Chart Datum (CD). This is significantly higher than the highest recorded high tide of 5.4 meters above CD. This will safeguard critical infrastructure against storm surges and tidal flooding.
Additionally, the company has undertaken extensive mangrove plantations in the coastal areas surrounding the plant. These mangroves act as natural barriers, reducing the impact of coastal erosion and storm surges, while also supporting local biodiversity and enhancing ecosystem resilience.
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India's ambitious climate goals face hurdles from rising energy demand and climate risks like water stress and extreme weather. However, companies like Tata Power and Adani Power are demonstrating proactive strategies through water management, resilient infrastructure, and natural defences like mangroves, showcasing a path towards sustainable operations amidst these challenges.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Jun 13, 2025, 12:51 PM IST
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