PSUs in the Indian energy sector are rapidly transitioning to green energy. NLC will be adding upto 10 GW of green energy capacity in near future.
On October 23, 2024, NLC India Limited (NLCIL) and Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL) signed a joint venture agreement for the establishment of three 125 MW lignite-based thermal power stations in the state of Rajasthan. The agreement also calls for the development of mines to supply the thermal power station’s fuel needs.
Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL) and NLC India Renewables Limited (NIRL), a wholly owned subsidiary of NLCIL, inked a joint venture agreement for the development of 2000 MW of renewable electricity projects in the state of Rajasthan.
NLC will be adding upto 10 GW of green energy capacity in near future.
PSUs in the Indian energy sector are rapidly transitioning to green energy. The country’s carbon markets will grow as the greener transition is scaled up. Trading carbon credits will help businesses make the switch to green energy. Carbon credit markets are developing on a global scale. Carbon markets are essential to the larger plan to fight climate change and move towards a low-carbon economy because they provide financial incentives for cutting emissions.
Through a number of strategies that provide financial incentives for lowering greenhouse gas emissions, the carbon market can help fight climate change. Governments limit overall emissions and give businesses permission to emit a specific quantity of CO2. Businesses can sell their extra licenses to other parties if they lower their emissions below their allotted limits. As a result, there is an economic incentive to cut emissions.
Carbon markets incentivise companies to invest in cleaner technology and practices by putting a price on carbon emissions. Reducing emissions becomes more appealing as their cost increases. Businesses may finance wind, solar, and other renewable energy projects that lessen dependency on fossil fuels by offering carbon credits for sale.
Carbon markets drive research and development by generating demand for low-carbon technology. Businesses are encouraged to come up with new and economical solutions to cut pollution.
International collaboration in combating climate change can be facilitated via carbon markets. By exchanging carbon credits, nations may work together to reduce emissions more affordably. Projects that protect forests and other carbon sinks—which take CO2 out of the atmosphere—can be funded via carbon markets. This fights climate change while preserving ecosystems and biodiversity. Companies are free to choose the most economical method of achieving their emissions goals. They have the option of investing in initiatives that offset their emissions elsewhere or lowering their own emissions.
NLC’s transitioning towards a green energy company is an example of how Indian PSU’s are driving the energy transition and will benefit the Nation.
Galactik Views