Karnataka is a leader in renewable energy with an installed RE capacity of 22 GW, with significant potential in solar, wind, and hydroelectric power. The state aims to increase its renewable energy capacity incrementally by 19 GW by 2030 and reach 38 GW by 2035 shared Gaurav Gupta, IAS, Additional Chief Secretary – Energy Department, Government of Karnataka in an exclusive conversation with Elets News Network (ENN). Edited excerpts:

Karnataka has been a leader in renewable energy. How is the government leveraging innovative technologies, like floating solar plants or hybrid renewable systems, to expand capacity while addressing land use challenges?

The Government of Karnataka have a pro-investment policy for Renewable Energy in place (i.e., Karnataka Renewable Energy Policy 2022-2027) which promotes the development of various forms of new renewable energy including floating solar, hybridisation of RE including solar and wind with or without energy storage, or floating solar and hydro in reservoirs to effectively use the water body space and existing evacuation infrastructure. Karnataka is harnessing solar energy from water bodies by installing floating solar panels. For instance, the state plans to generate 2,500 MW of renewable energy from 40 lakes, covering approximately 10,000 acres of waterbodies. The state has allocated 2.3 GW of solar and wind hybrid projects as of Dec 2024 and it is expected that future projects to be developed in the state are largely hybrid in nature. This approach not only saves land but also helps in water conservation by reducing evaporation.

Karnataka is also focusing on hybrid renewable energy projects that combine solar and wind power with battery energy storage systems (BESS). One notable project is the 300 MW Peak Power project, which includes an 81 MW solar plant, a 322.245 MW wind plant, and a 150 MWh BESS plant in the Gadag and Koppal districts. These systems help mitigate the intermittency of renewable energy sources and ensure a stable power supply.

To address land use challenges, Karnataka has implemented innovative land acquisition models. For example, the Pavagada Solar Park (2050 MW), one of the largest solar parks in the world, was developed on 13,000 acres of semi-arid, drought-prone land leased by local farmers. This model allows farmers to retain ownership of their land while earning a steady income from the lease.

The state has also identified further land adjacent to the existing Pavagada Solar Park i.e. in a location called Ryapte, to scale the park capacity by another 2GW to address the land issues for the investors. Similarly, RE zones are being identified by the Government to ease the constraints on land and evacuation.

What are the key strategies outlined in the Karnataka Renewable Energy Policy 2022-2027 to attract investments in renewable energy? How do these strategies align with the state’s vision for transforming its energy landscape?

The Karnataka Renewable Energy Policy 2022-2027 outlines several key strategies to attract investments in renewable energy, aligning with the state’s vision for transforming its energy landscape

• Incentives and Subsidies: The policy offers various financial incentives aligned to the States Industrial Policy. These incentives aim to reduce the initial investment burden and make renewable energy projects more financially viable.
• Ease of Doing Business: The policy emphasises simplifying regulatory procedures and reducing bureaucratic hurdles. This includes single-window clearances for project approvals and streamlined processes for land acquisition and grid connectivity.
• Infrastructure Development: The policy focuses on strengthening the power evacuation infrastructure, including the development of dedicated renewable energy zones and green energy corridors. This ensures efficient transmission and distribution of renewable energy.
• Hybrid Projects and Energy Storage: Encouraging the development of hybrid renewable energy projects (combining solar, wind, and other sources) and integrating energy storage systems to enhance grid stability and reliability.
• Research and Development: The policy promotes investment in research and development to foster innovation in renewable energy technologies. This includes support for pilot projects and collaboration with academic and research institutions.
• Public-Private Partnerships (PPP): The policy encourages PPP models to leverage private sector expertise and investment in renewable energy projects. This approach aims to attract significant private investment while ensuring public sector support and oversight.

These strategies align with Karnataka’s vision of becoming a leader in renewable energy by creating a conducive environment for investment, promoting innovation, and ensuring sustainable development. The state’s commitment to renewable energy is evident in its efforts to address land use challenges, enhance grid infrastructure, and promote hybrid and storage solutions, all of which contribute to a robust and resilient energy landscape.

Strengthening transmission infrastructure is crucial for integrating renewable energy sources. What initiatives are being undertaken to enhance the state’s transmission capabilities, and how do these initiatives align with Karnataka’s renewable energy targets?

Karnataka is undertaking several initiatives to enhance its transmission infrastructure, which is crucial for integrating renewable energy sources and meeting its ambitious renewable energy targets

• Green Energy Corridors: Karnataka is developing green energy corridors to facilitate the transmission of renewable energy from generation sites to consumption centres. These corridors include high-capacity transmission lines and substations specifically designed to handle the variability and intermittency of renewable energy.
• Upgrading Existing Infrastructure: The state is upgrading its existing transmission infrastructure to increase capacity and improve reliability. This includes the installation of advanced monitoring and control systems to manage the flow of renewable energy more efficiently.
• New Transmission Projects: Several new transmission projects are underway, such as the Kudgi Transmission Line, which covers 490 km from Kudgi to Bidadi. These projects aim to enhance the state’s ability to transmit large volumes of renewable energy over long distances.
• Public-Private Partnerships (PPP): Karnataka is leveraging PPP models to attract private investment in transmission infrastructure. This approach helps to accelerate the development of critical projects and ensures that the state can meet its renewable energy targets.
• Integration of Energy Storage Systems: To address the intermittency of renewable energy, Karnataka is integrating energy storage systems into its transmission network. These systems help to balance supply and demand, ensuring a stable and reliable power supply.

These initiatives align with Karnataka’s renewable energy targets by ensuring that the state has the necessary infrastructure to support the integration of renewable energy sources. The development of green energy corridors, upgrading existing infrastructure, and implementing new transmission projects are all critical components of the state’s strategy to increase its renewable energy capacity and achieve its targets.

With Karnataka’s plan to double the number of GCCs by 2029, how do you envision the role of these centres in the energy sector, particularly in driving innovation, research, and development? What strategies are in place to attract energy-focused GCCs to the state?

Karnataka’s ambitious plan to double the number of Global Capability Centres (GCCs) by 2029 is set to significantly impact the energy sector, particularly in driving innovation, research, and development.

Also Read | Karnataka’s Vision for Innovation, Industry, and Investment

Role of GCCs in the Energy Sector

• Innovation Hubs: GCCs are expected to serve as innovation hubs where cutting-edge technologies in renewable energy, smart grids, and energy storage can be developed and tested. These centres will foster collaboration between multinational corporations, startups, and research institutions, driving advancements in energy efficiency and sustainability.
• Research and Development (R&D): With a focus on R&D, energy-focused GCCs will work on developing new materials, improving existing technologies, and creating innovative solutions to address energy challenges. This includes advancements in solar and wind energy, battery storage, and grid management.
• Talent Development: GCCs will play a pivotal role in nurturing a skilled workforce equipped with the latest knowledge and expertise in the energy sector. This includes training programs, internships, and partnerships with academic institutions to ensure a steady pipeline of talent.

Strategies to Attract Energy-Focused GCCs

• Incentives and Support: The Karnataka government offers various incentives, including tax breaks, subsidies, and grants, to attract energy-focused GCCs. These financial incentives make it more attractive for companies to set up their centres in the state.
• Global Innovation Districts: The establishment of Global Innovation Districts, which are designed to create hubs of innovation, will provide a conducive environment for energy-focused GCCs. These districts will offer state-of-the-art infrastructure, access to a skilled talent pool, and opportunities for collaboration.
• Beyond Bengaluru Initiative: To promote equitable growth, the government is encouraging the establishment of GCCs in Tier-II and Tier-III cities through the Beyond Bengaluru initiative. This includes providing additional incentives and support to companies willing to set up their centres outside the capital.
• Dedicated Support Units: The government has set up dedicated GCC support units to assist companies with the establishment and operation of their centres. These units guide regulatory compliance, infrastructure development, and other operational aspects.
• Focus on Sustainability: Karnataka’s commitment to sustainability and green initiatives aligns with the goals of energy-focused GCCs. The state’s policies and initiatives in promoting renewable energy and sustainable practices make it an attractive destination for companies in the energy sector.

These strategies are designed to create a thriving ecosystem for GCCs, driving innovation and development in the energy sector while contributing to Karnataka’s vision of becoming a global hub for renewable energy and sustainable development. 

Karnataka, particularly Bengaluru, is home to several prominent energy- focused Global Capability Centres (GCCs). Here are a few notable ones:

• Schneider Electric: Their GCC in Bengaluru focuses on developing innovative energy management and automation solutions. The centre plays a crucial role in R&D, driving advancements in smart grid technologies and energy efficiency.
• Siemens: Siemens’ GCC in Bengaluru is dedicated to digitalisation and automation in the energy sector. The centre works on cutting-edge projects related to renewable energy integration, smart grids, and energy storage solutions.
• GE Renewable Energy: GE’s GCC in Bengaluru is a hub for innovation in renewable energy technologies. The centre focuses on wind, solar, and hydroelectric power solutions, contributing to GE’s global R&D efforts.
• ABB: ABB’s GCC in Bengaluru is involved in developing advanced technologies for power and automation. The centre works on projects related to grid modernization, renewable energy integration, and energy storage.

These centres are instrumental in driving innovation, research, and development in the energy sector, aligning with Karnataka’s vision of becoming a global hub for renewable energy and sustainable development.

What are the key areas within Karnataka’s energy sector that offer the most promising opportunities for investors, and how is the government planning to support and facilitate investments in these areas?

Karnataka’s energy sector offers several promising opportunities for investors, particularly in the following key areas:

Key Investment Opportunities

• Renewable Energy: Karnataka is a leader in renewable energy with an installed RE capacity of 22 GW, with significant potential in solar, wind, and hydroelectric power. The state aims to increase its renewable energy capacity incrementally by 19 GW by 2030 and reach 38 GW by 2035. Investment opportunities include large-scale solar parks, wind farms, and hybrid renewable energy projects.
• Energy Storage Systems: With the growing integration of renewable energy, there is a rising demand for energy storage solutions. Investors can explore opportunities in battery storage systems, pumped hydro storage, and other innovative storage technologies.
• Smart Grids and Grid Modernization: Upgrading the state’s transmission and distribution infrastructure to support renewable energy integration is a priority. Investment opportunities exist in smart grid technologies, advanced metering infrastructure, and grid management systems.
• Electric Vehicles (EVs) and Charging Infrastructure: Karnataka is promoting the adoption of electric vehicles and the development of EV charging infrastructure. Investors can explore opportunities in manufacturing EVs, setting up charging stations, and developing related technologies.
• Green Hydrogen: The state is exploring the potential of green hydrogen as a clean energy source. Investment opportunities include the production, storage, and distribution of green hydrogen, as well as the development of hydrogen fuel cells.

Government Support and Facilitation

To attract and facilitate investments in these areas, the Karnataka government has implemented several strategies:

• Incentives and Subsidies: The government offers various financial incentives, including capital subsidies, tax exemptions, and concessional tariffs for renewable energy projects.
• Ease of Doing Business: Simplifying regulatory procedures and reducing bureaucratic hurdles are key priorities. The government has introduced single-window clearances for project approvals and streamlined processes for land acquisition and grid connectivity.
• Infrastructure Development: The state is investing in the development of dedicated renewable energy zones, green energy corridors, and EV charging infrastructure to support the growth of the energy sector.
• Public-Private Partnerships (PPP): Karnataka encourages PPP models to leverage private sector expertise and investment in energy projects. This approach helps accelerate the development of critical infrastructure and ensures efficient project implementation.
• Research and Development (R&D): The government promotes investment in R&D to foster innovation in energy technologies. This includes support for pilot projects, collaboration with academic and research institutions, and the establishment of innovation hubs.

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