1.

What would the enabling factors that could return ReNew to the era of
“scorching growth”?
Answer- To support ReNew’s resurgence to a period of “scorching growth,” several
enabling factors could play a critical role.
a. Government Policies and Regulations
Government policies are pivotal in catalyzing the renewable energy sector's growth.
As the Indian government prioritizes renewable energy and aims to reach 500 GW of
renewable capacity by 2030, ReNew could benefit from supportive policies like tax
incentives, subsidies, favorable tariffs, and streamlined project approvals. For
example:
 Renewable Purchase Obligations (RPOs): Policies like RPOs require
utilities to source a certain percentage of their energy from renewables,
increasing demand for green power. With India's RPO targets set to rise,
ReNew could capture a larger market share, leveraging this policy shift to
drive revenue growth.
 Tax Benefits and Incentives: Incentives such as the accelerated
depreciation benefit for solar projects can reduce capital costs for ReNew,
improving return on investment (ROI) and shortening payback periods.
 Green Hydrogen Initiatives: With India’s focus on green hydrogen as part
of its clean energy roadmap, ReNew could explore opportunities in hydrogen
production. A global green hydrogen market is projected to grow from
approximately $0.3 billion in 2020 to over $89 billion by 2030, creating vast
potential for growth.
b. Digital Transformation and Technological Advancements
Digital transformation, particularly in areas like smart grid technology, predictive
analytics, and AI-driven asset management, can increase operational efficiency and
reduce costs for renewable energy companies. For ReNew, this could involve:
 Smart Grid Integration and Remote Monitoring: Implementing smart
grid technologies and IoT for real-time monitoring can reduce downtime,
optimize energy output, and cut operational costs. For instance, predictive
maintenance using AI could minimize equipment failure rates by anticipating
issues before they occur.
 Data-Driven Decision Making: Using big data analytics to optimize site
selection, project planning, and load forecasting can further enhance ReNew's
competitive edge. An efficient data-driven approach can help in improving
output by 5-10%, which can be significant given the scale of ReNew’s
portfolio.
 Energy Storage Solutions: Integrating advanced battery storage
technology would allow ReNew to store surplus energy, thereby stabilizing
supply and meeting peak demand more effectively. This capability will be
 crucial as ReNew scales up, given that energy storage can also support grid
reliability, reduce costs, and manage intermittency challenges in solar and
wind power.
c. International Market Expansion
As the global demand for clean energy rises, ReNew could explore opportunities in
international markets, particularly in regions with high renewable energy demand,
such as the U.S., Europe, and Southeast Asia. Benefits of expanding internationally
include:
 Market Diversification: Expanding into different regions could mitigate
risks associated with policy changes or market saturation in India. By
diversifying geographically, ReNew can stabilize its revenue streams and
hedge against domestic market volatility.
 Leverage in Emerging Markets: Emerging economies in Africa and
Southeast Asia are rapidly adopting renewables due to the falling costs of
solar and wind power. ReNew could target these markets for greenfield
projects or acquisitions to establish a foothold.
 Joint Ventures and Partnerships: ReNew could collaborate with global
renewable companies to gain market knowledge and establish a presence in
new regions. Joint ventures could also help ReNew access financing options,
local resources, and governmental approvals more efficiently.
Question-How has the global energy landscape changed since 2021?
Answer- Since 2021, the global energy landscape has undergone significant
transformation, driven by heightened urgency around decarbonization, geopolitical
tensions, technological advancements, and shifts in policy and investment. These
changes underscore an accelerated move toward sustainable energy, aligning with
global climate goals while also reshaping economic and geopolitical balances.

1. Intensified Shift to Renewable Energy

Rising Renewable Capacity: Renewable energy capacity has seen substantial
growth, with the International Energy Agency (IEA) projecting a 50% increase from
2019 to 2024. Investments in renewables have surged globally, with annual
spending on clean energy rising from less than $1 trillion in 2015 to nearly $1.8
trillion by 2023. Major economies are committing billions to renewable
infrastructure: for instance, the U.S. aims to increase investments in clean energy
under the American Jobs Plan, while the UK recently announced a £285 million
renewable energy support scheme to enhance its wind capacity, aiming to power
around eight million homes.
Regional Leaders and Emerging Markets: China has maintained its lead as the
largest producer of wind and solar energy, meeting one-third of global solar
capacity and heavily investing in battery storage to support electric vehicles (EVs).
Emerging economies like India and Brazil are also prioritizing renewables—India,
with its target of achieving 175 GW from renewables by the end of 2022, and Brazil,
leveraging biofuels and wind energy, projects solar energy to make up 32% of its
energy capacity by 2040.
2. Geopolitical Shifts and Energy Security Concerns
Impact of the Ukraine Conflict: Russia’s invasion of Ukraine in 2022 triggered a
wave of energy price hikes, particularly for oil and gas, and highlighted the risks of
relying on centralized fossil fuel sources. Europe, which is especially dependent on
Russian natural gas, has accelerated its transition to renewables as a means to
ensure energy security. This urgency has prompted significant policy shifts and
investments across European nations to diversify energy sources and reduce
dependency on Russian gas.
Shift in Energy Demand: The conflict has underscored the volatility of fossil fuel
markets and the economic vulnerability tied to them. According to McKinsey’s
Global Energy Perspective 2022, these events have spurred further commitment to
renewables, with projections showing that by 2050, renewables could account for
80–90% of the global power mix. This aligns with IRENA’s recommendation that a
blend of renewables and efficiency improvements could meet almost 90% of the
2015 Paris Accord’s emission reduction targets.
3. Technological Advancements and Sectoral Transitions
Electric Vehicles and Transportation: One of the most rapid transitions has occurred
in transportation. The global stock of electric cars grew from 5 million in 2018 to
more than 25 million by 2023, significantly reducing demand for oil. McKinsey
estimates that this shift could lead global oil demand to peak within the next two to
five years. Alongside EVs, alternative fuels like hydrogen, CNG, and LPG are gaining
traction, especially in regions like India, where CNG-powered public transport has
become mandatory in some areas.
Hydrogen and Sustainable Fuels: Green hydrogen is emerging as a critical energy
source, with projected demand set to grow fivefold by 2050. The use of hydrogen
and other sustainable fuels, particularly in hard-to-abate sectors like steel and
aviation, is expected to grow as costs decrease and technology matures. McKinsey’s
report notes that hydrogen could contribute 28% of power demand by 2050, with
significant potential to decarbonize industries.
4. Changing Economic Dynamics for Fossil Fuel Exporters
Declining Influence of Fossil Fuel Dominance: The structural shift toward renewable
energy is expected to weaken the influence of fossil fuel-exporting nations,
particularly members of OPEC. According to IRENA’s Geopolitics of the Energy
Transformation report, countries like Saudi Arabia and the UAE—though resilient—
may still experience economic challenges due to declining oil revenue. This trend is
likely to be more severe for less resilient oil-dependent countries, which may face
social and economic instability as a result.
Economic and Social Implications: For oil-dependent countries, the reduction in
fossil fuel revenue could result in subsidy cuts and declines in public spending,
leading to potential social unrest. Migrant laborers from South Asia and Africa who
work in oil-producing countries may face job losses, reducing remittances and
causing economic ripple effects in their home countries.
5. Global Energy Landscape Outlook
Despite challenges, the transition is underway with growing momentum. Policies
following the 2015 Paris Accord, reinforced by initiatives from COP26, have
compelled countries to double down on net-zero targets. However, even with net-
zero commitments, McKinsey projects that without accelerated action, global
warming could still exceed 1.7°C by 2100, underscoring the need for even more
immediate efforts.
In conclusion, the global energy landscape has moved toward a decentralized,
renewable-based model, reducing reliance on fossil fuels for economic and
environmental resilience. This transition, though complex and fraught with
challenges, promises a more sustainable, secure, and stable energy future.

2. Question- Read the quote from Sumant below. Why would he want to
undertake such a task?

In addition to attracting foreign investment and fostering government-international

investor relations, several deeper strategic considerations may have influenced
Sumant’s decision to pursue a U.S. listing and to facilitate this two-way dialogue.
Here are some additional motivations that might have been in his mind:
1. Enhancing ReNew’s Credibility and Global Brand: Listing on a prominent
U.S. stock exchange, such as the NASDAQ or NYSE, could significantly
enhance ReNew’s global credibility. A U.S. listing can signal transparency,
stability, and adherence to international corporate governance standards,
which can attract a broader base of institutional investors. This credibility
boost could help ReNew compete more effectively against other large global
players in renewable energy, positioning it as a reputable and trustworthy
brand worldwide.
2. Leveraging Global Expertise and Best Practices: By engaging with
global investors, ReNew could access valuable insights, industry best
practices, and operational strategies from experienced investors who are
familiar with established renewable markets in Europe, North America, and
beyond. This knowledge could help ReNew improve its operational efficiency,
adopt innovative technologies, and make data-driven strategic decisions,
 thereby enhancing its competitive advantage in India and potentially other
markets.
3. Diversifying Funding Sources to Reduce Financial Risk: Relying solely
on domestic investors or bank financing can expose a company to
concentrated financial risks, especially if domestic market conditions or
regulations change. By attracting a diverse range of global investors, ReNew
can reduce this dependency and increase its resilience against fluctuations in
the Indian financial market or changes in domestic policies. This
diversification can provide more financial stability and flexibility, especially as
renewable projects often have long payback periods.
4. Influencing India’s Energy Policy for a Pro-Renewable Future: By
presenting foreign investor insights and concerns to the Indian government,
ReNew could potentially influence the development of renewable energy
policies that favor private investment, facilitate smoother project approvals,
and offer more predictable regulatory frameworks. ReNew could advocate for
policies that streamline processes, reduce bureaucratic delays, and ensure
stable tariffs or incentives, creating a more supportive environment for
renewables.
5. Supporting India’s Net-Zero Commitments: India has set ambitious net-
zero targets, and renewable energy companies like ReNew are essential to
achieving these goals. Sumant may see ReNew’s role as more than just a
business but as a key contributor to India’s sustainable development and
decarbonization efforts. By bridging global and domestic stakeholders, ReNew
could position itself as a partner in India’s green transition, attracting
mission-driven investors focused on ESG (Environmental, Social, and
Governance) criteria who want to support large-scale clean energy
transformation in emerging economies.
6. Creating a Competitive Edge through Policy Influence: As one of India’s
leading renewable energy companies, ReNew’s engagement with the
government on behalf of global investors could enable it to shape the
regulatory environment to its advantage. If ReNew successfully influences
policies to encourage renewable energy development, it may benefit from
favorable regulatory conditions that could place it ahead of its domestic
competitors in terms of project approvals, tariffs, and incentives.
7. Long-Term Market Expansion Goals: By appealing to global investors and
educating them on India’s potential, ReNew may also be exploring the
possibility of expanding beyond India in the future. Establishing a strong
relationship with international investors could provide ReNew with the
backing needed for potential expansion into other emerging markets. These
relationships could facilitate entry into regions where global investors already
have a presence and market knowledge, thus easing barriers to international
growth.
Sumant’s approach to fostering this two-way dialogue with global investors and the
Indian government appears to be a multifaceted strategy that not only seeks
immediate financial benefits but also aims at positioning ReNew as a pivotal player
in India’s energy landscape. This vision likely encompasses brand building, market
influence, knowledge acquisition, and alignment with India’s broader sustainability
goals.