Reducing Carbon Footprint Through Strategic Energy Procurement

Rashmi Singh, MD & CEO, Enexion Consulting Private Limited, in an interaction with Industry Outlook, discusses how Indian businesses are integrating strategic energy procurement into decarbonization through renewables, PPAs, and AI-driven solutions. She addresses key challenges such as price volatility and policy complexities while exploring the impact of regulations, energy storage, and decentralized grids on corporate energy strategies. With over a decade of expertise in ESG, sustainability, and strategic energy solutions, Rashmi is a COP Delegate and thought leader, spearheading corporate responsibility initiatives and driving data-driven strategies for global energy transformation.

With rising sustainability pressures, how are Indian companies integrating strategic energy procurement into decarbonization roadmaps, and what trends are driving this shift?

Well, if we look at the Indian business landscape, there’s definitely been a significant shift towards integrating strategic energy procurement into decarbonization roadmaps. Energy consumption is one of the biggest contributors to carbon emissions, and companies are realizing that to truly achieve their sustainability goals, energy is a critical piece of the puzzle.

What I’ve seen happening in India is that many companies are actively exploring renewable energy sources, like solar and wind, as part of their decarbonization strategies. It’s not just about switching to green energy for the sake of compliance; it's also becoming an economic decision.

I think what’s driving all of this is a combination of global sustainability regulations, the desire for operational efficiency, and a growing demand from investors for companies to take ESG commitments seriously. Indian businesses are beginning to understand that integrating sustainable energy practices is not only good for the planet but also for their bottom line.

So, overall, it's about finding a balance—creating an energy strategy that aligns with both business goals and climate action. It's an exciting time to be part of this transformation, and I think we'll see even more Indian companies stepping up their efforts in the next few years.

What major challenges do Indian industries face in adopting long-term renewable energy contracts, and how are businesses mitigating risks like price volatility?

The Indian market has come a long way in embracing renewable energy, but there are still a few key challenges that businesses face when adopting long-term renewable energy contracts.

One of the major hurdles is price volatility. Although renewable energy costs have come down significantly in recent years, they are still subject to market fluctuations—especially as solar and wind energy prices can fluctuate based on factors like monsoon variability (affecting wind power) or global supply chains. Fuel prices and government subsidies also add layers of complexity. For instance, the prices of solar panels and wind turbines can be affected by global supply chain issues, increasing the capital costs of projects. As a result, locking in long-term prices becomes a challenge for businesses that are trying to predict future energy expenses.

Additionally, India has a decentralized approach where different states offer varying incentives and policy frameworks for renewable energy projects. This can add complexity for businesses as they navigate different rules.

To mitigate these risks, Indian companies are increasingly relying on Power Purchase Agreements (PPAs). These contracts, especially in the solar sector, are becoming more common as businesses are locking in energy costs for long durations.

While price volatility and policy uncertainty are real challenges, businesses are adapting through a combination of smart contracts, energy diversification, and technology integration.

How are evolving power purchase agreements (PPAs), including corporate PPAs and group captive models, transforming India's energy procurement landscape for large consumers?

PPAs have really evolved over the last few years. Traditionally, large consumers relied heavily on the grid or utility companies for their energy needs, but what we're seeing now is a shift towards more tailored solutions, like corporate PPAs and group captive models, which are truly transforming the landscape.

Large companies are now entering into direct agreements with renewable energy producers and securing energy at a fixed price over the long term. This is beneficial because it gives businesses price stability and predictability, which is really important when energy prices can fluctuate. For industries like steel or automobiles, which are extremely energy-intensive, this is a huge plus.

Then, we have the group captive models, which have become popular in industrial clusters. Essentially, multiple companies within a cluster come together to pool resources and set up their own renewable energy plants. This allows them to generate their own power, which not only reduces costs but also increases reliability. The surplus energy they generate can even be sold to the grid or other companies, making it a smart move financially as well.

All in all, it’s a shift towards a more decentralized energy system, where businesses have the opportunity to create their own energy strategies that align with their sustainability goals while also protecting their bottom line.

With India's regulatory push for clean energy, how do policy changes and incentives influence business decisions on renewable versus conventional power sourcing?

India’s push towards clean energy has definitely created a lot of momentum in the business community. I would say policy and incentives are a huge driving force when it comes to business decisions. The government’s support for clean energy has been a game-changer.

These incentives have made renewable energy more accessible and financially attractive for businesses, especially in comparison to conventional power, which can sometimes be more expensive and less predictable in terms of cost increases over time.

On the other hand, with global ESG pressures and the increasing importance of green credentials, businesses are thinking beyond just cost. They’re increasingly aware that investing in renewables can improve their brand value, meet ESG commitments, and even help them qualify for green financing or sustainability-linked loans.

At the same time, conventional power sources still have a place in some industries, especially where there's no immediate access to renewable energy infrastructure, like in some remote areas. However, the policy push is definitely encouraging businesses to make the shift, and it's becoming harder to ignore the environmental, financial, and long-term risks of sticking to conventional power.

In short, India’s regulatory push, combined with the incentives for clean energy, has shifted the conversation from "Can we afford it?" to "How soon can we make the switch?" Businesses are now looking at renewable energy not just as a compliance or cost-saving measure but as an opportunity to future-proof their operations and align with global sustainability trends.

How are digital platforms and AI-driven energy management solutions helping companies optimize energy procurement and track real-time carbon reduction metrics?

While AI is actively being used for energy procurement, management, and carbon reduction, particularly in large industries that are looking to optimize their energy consumption and reduce their carbon footprint. There are the challenge lies in scaling these technologies across industries of all sizes, and addressing the infrastructure and skill gaps.

Not all companies have the infrastructure in place to support AI-based solutions. Especially in smaller, less-developed industries or regions, the initial investment can be a barrier. AI relies heavily on data, and the availability of high-quality, real-time data is still a challenge in some areas. There’s a lack of skilled workforce trained to use AI in energy procurement and management.

As India continues to invest in renewable energy and AI technologies, we can expect to see more widespread adoption of these solutions.

How will energy storage innovations and decentralized grids reshape corporate energy procurement strategies, and what factors will drive adoption in India?

Renewable energy, while abundant, is intermittent—meaning the sun doesn’t always shine, and the wind doesn’t always blow when we need power the most. This is where battery storage technologies like lithium-ion batteries, flow batteries, and advanced storage systems come in. They store excess energy produced during peak production times and discharge it when demand is high, ensuring reliable energy supply even when renewable sources aren’t generating.

India's traditional centralized energy grid has always been prone to supply chain bottlenecks, grid congestion, and power outages. However, decentralized grids, also known as microgrids, are shifting the power balance. These grids operate on a local scale, giving businesses the ability to generate and distribute energy on-site. Companies can produce their own renewable energy (say, through solar panels) and manage their energy use locally without relying heavily on the national grid.