Tamil Nadu: A Green Ecosystem for Investments in Clean Energy Supply Chain
1630 hrs.
19 January 2023
Tamil Nadu Lounge
Promenade 73, Davos
Tamil Nadu: A Green Ecosystem for Investments in Clean Energy Supply Chain
The state of Tamil Nadu is a pioneer in clean energy adoption. Tamil Nadu has the second largest economy among Indian states (in terms of GDP) and supports the highest capacity of renewable energy (RE) installations in the country. The state hosts 20 GW of renewable energy capacity, which is equivalent to 14% of India’s RE capacity. This includes 24% of India’s wind power generation capacity and 10% of India’s solar power generation capacity. The state also has a vibrant ecosystem of wind energy equipment manufacturing.
Tamil Nadu has historically served as an attractive destination for clean energy investments, due to high levels of renewable resources , attractive incentives for clean energy deployment, and a supporting framework for corporate adoption of clean energy. In addition, the overall industrial ecosystem, the availability of skilled manpower, and a well-developed transportation and logistics network (including multiple shipping ports) has led to the development of a clean energy equipment manufacturing industry, which serves not only the needs of the country but contributes to exports.
Having established a strong clean energy value chain, Tamil Nadu is well poised to host investments for expansion of existing supply chain for onshore wind, develop manufacturing supply chain for offshore wind and solar power, and develop the complete value chain for hydrogen. A combination of supply side interventions from policy makers, increase in overall energy demand, and energy transition priorities are expected to create adequate demand both within the state and outside, that creates the business case for such investments. For example, the Government of Tamil Nadu has already informed about its intention to come with a Green Hydrogen Policy. The manufacturing supply chain developed in the state can also be designed to partially cater to the demand of export market, especially in areas such as offshore wind and hydrogen.
This closed-door session shall provide a platform to engage with the highest levels of the State Government and discuss the following key topics:
- Tamil Nadu’s supporting ecosystem for clean energy investments;
- Sectoral priorities of Government of Tamil Nadu, for future investments in energy sector supply chain; and
- Clarify the queries of investors, covering aspects such as promotional incentives, facilitation for land acquisition or leasing, availability of manpower, environmental compliance requirements, domestic content requirement, repatriation of profits etc.
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