Crédit Agricole CIB’s first ever Energy Transition & Infrastructure event in India

To help clients stay ahead of the curve by seizing opportunities, the Bank hosted industry leaders, investors, and innovators in Mumbai to explore the latest trends in those sectors, covering macro backdrop, application of technologies, regulatory regime, and investment dynamics. The session featured keynotes from Crédit Agricole CIB and SBI Mutual Fund, India's largest asset manager and a joint venture between Amundi and State Bank of India. Here we bring you a summary of the perspectives.

India is the world's 4th largest economy, nevertheless the per capita energy consumption remains just one-third of the global average. Rising living standards are driving increasing power demand and substantial growth in the energy sector. The Government of India has set a target of 50% renewable energy in its mix by 2030, backed by renewable power prices lower than new-build coal, thanks to affordable land in resource-rich regions, declining installation costs, and abundant natural resources.

As the world's 4th largest renewable energy producing nation, India is amongst the top 5 globally for solar resources and wind capacity.

The Government of India has implemented several policy initiatives to attract investment: strengthening legal frameworks, establishing transparent e-auction processes for project tenders, and allowing 100% foreign ownership in key infrastructure sectors. The investment target of US$1.7 trillion by 2030 in infrastructure mainly concerns the following sub-sectors:

• Renewables: Annual additions of ~35-40 GW, requiring ~US$150 billion over the next 5 years.
• Transmission (physical and technical systems that transmit power, signals, or information from one point to another): US$100-120 billion in new investments through 2032.
• Smart meters (digital devices that record electricity consumption and transmit the data automatically to energy suppliers): 250 million units targeted by 2026, ~US$20 billion.

• Battery Energy Storage System (BESS)

By 2030, renewables will generate almost 30% of global electricity supply, double today’s level. This calls for a rapid increase in power system flexibility and grid investment. Growing electrification and demand-side flexibility (smart chargers, heat pumps), storage and dispatchable power plants will be increasingly needed to integrate wind and solar energy securely and cost-effectively.

• Hydrogen

Low-carbon hydrogen and fuels are an important part of net-zero policies, particularly as regards hard-to-abate sectors - shipping, aviation, industry. High costs remain the main obstacle: low-carbon hydrogen maintains a significant high premium over grey hydrogen. Demand-side policies are needed globally to encourage companies to sign offtake agreements. With a competitive cost of renewable energy, India is expected to be one of the most affordable producers of green hydrogen globally.

Building on Crédit Agricole Group's presence in India since 1877 and Crédit Agricole CIB's strengthened franchise, the Bank is well positioned to support the country's ambitions.

The recent capital increase and opening of our GIFT City Branch have enhanced our product offering for local and international clients operating in and outside India, with increased domestic lending capacity and expanded foreign currency solutions.

Through close relationships with sponsors investing significantly in India's infrastructure across the entire value chain, combined with expertise in structuring complex transactions and global ESG leadership, the Bank is strongly positioned to support the country's energy transition.

With sector expertise including advanced trends such as BESS and hydrogen, and comprehensive solutions spanning the full asset lifecycle, Crédit Agricole CIB is strategically placed to serve as a one-stop shop, offering advisory, structuring, financing, hedging, and more.