Editorial December 2023 Renewable Energy and its Impact in the Chemical Industry

Rajiv Parikh

15 Dec 2023

There have been several IPO’s recently and shares of several companies that have taken center stage and have recovered from an all-time low to fairly high values. IREDA is one of them that have raised 4 fold from INR 32 to INR 120 which is the highest among the renewal energy companies making it to the mainstream retailers and institutional investors. It is one of the players in the Solar Energy sector. The same solar energy sector which was once not given due importance few years back in 2016, when the news of Solar City, one of the companies which went bankrupt but was then acquired by none other than the energy crusader, Elon Musk and Tesla.

There has been similar price play with Suzlon Energy which is one of the companies providing solutions for wind energy. It has gone down from INR 389 in 2008 to INR 49 and from all-time low of INR 2.5 to approximately INR 40 today. At that time, there were several layers of denial to become carbon neutral or generate renewal energy but now with the new governments’ initiative to become carbon neutral by 2047, there are chances that we will generate more renewal energy through wind energy in the next several years to become energy independent.

The third and the most important renewal energy generation is through Hydro Power stations and SJVN is one of the leaders. It has started its journey from INR 30 to currently approximately INR 95. All of the dams can be configured to generate hydro-power. All water flowing from peaks of the mountains to the bottom can be used to generate power, especially in the Himalayas and the state of Haryana.

By employing, solar, wind and hydro for generating renewable energy and to bring it to fruition is a long way to go but the impact it will have on the economies of the countries and environment will be commendable in the long run. We have still not focused on Thermal Energy and Nuclear Energy but as countries are striving hard to build more nuclear plants, the rate at which this will culminate for the energy needs to power homes, offices, factories and vehicles is going to play a major role in the economies of the companies and the countries.

The best part is, companies and countries with large surface area and located in between the Tropic of Cancer and Tropic of Capricorn will benefit the most and hence an international solar alliance has been established by the Government of India to include all the countries lying between this zone to work together for a sustainable future and harness the use of the sun. The initiative is about One Sun One World One Grid (OSOWOG) which was put forth in October 2018 and aims at connecting the energy supply across borders.

To make energy exchange possible across borders, there will be a need to have an energy exchange network. One of them is Indian Energy Exchange (IEX) which is also an India based company that is engaged in proving an automated trading platform for the physical delivery of electricity, renewable and

The chemical industry is a vital sector of the global economy. It is also the most resource intensive and making a major impact on the environment. As several reputed chemical companies will seek to adopt the more sustainable and circular business models, renewable energy will help these companies to reduce it dependence of fossil fuels, finite resources, minimize the wastage and pollution and contribute more towards a sustainable future.

Note: All stock related information is in the public domain and we do not own or suggest investing in any particular company. It is an independent opinion of the editor regarding how things are changing in the renewal energy sector.


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