ONGC Aims to Scale Up Renewable Capacity to 10 GW by 2030
As part of a more significant push to attain net zero for scope-1 and scope-2 emissions by 2038, the state-owned energy giant also expects to considerably expand its investment in green programmes to minimize its carbon footprint.
Oil and Natural Gas Corporation (ONGC) is aiming to raise its renewable energy capacity from 189 megawatts (MW) to 10 gigawatts (GW) by 2030 as part of a strategy for possibilities in the renewable energy and low-carbon sectors.
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As part of a more significant push to attain net zero for scope-1 and scope-2 emissions by 2038, the state-owned energy giant also expects to considerably expand its investment in green programmes to minimize its carbon footprint.
According to a statement from the business, “ONGC is investing approximately Rs 1 trillion by the end of this decade on its numerous green initiatives and is planning to scale up its renewable portfolio to 10 GW by 2030.”
Collaborations on various low-carbon energy prospects, such as renewable energy, green hydrogen, green ammonia, and other derivatives of green hydrogen, are being crafted with key participants in the energy sector.
It claimed that through integrating sustainable practises into core business activities, scope-1 and scope-2 emissions have decreased by 17% over the previous five years. It also said its emissions had been reduced by 2.66% in FY23.
ONGC has focused on R&D in carbon capture, utilization, and storage (CCUS) technology to reduce emissions from existing operations. ONGC plans to build two green-field oil-to-chemical (O2C) facilities in India.
However, the cornerstone of its energy business will still be the exploration and production (E&P) of oil and gas. The critical focus areas are:
- Extensive exploration in established basins and frontier plays.
- Continued production from active fields.
- Exploitation of deep-water assets.
By 2025, ONGC has set a lofty goal of bringing five lakh square kilometres of land under active exploration by purchasing one lakh square kilometres each year and investing Rs 10,000 crore in prospecting. This goal is part of our “Future Exploration Strategy.”
The Oil and Natural Gas Corporation (ONGC), India’s largest oil and gas exploration and production company, aims to expand its renewable energy portfolio significantly. ONGC has announced plans to scale up its renewable energy capacity to 10 GW by 2030 to align itself with India’s ambitious renewable energy targets. This initiative represents a significant diversification from the company’s primary operations and illustrates ONGC’s commitment to transitioning towards a cleaner and more sustainable energy future.
India has set an ambitious target of 175 GW of renewable energy capacity by 2022 and 450 GW by 2030 as part of its commitments under the Paris Agreement on climate change. Recognizing its vital role in India’s energy landscape, ONGC has pledged to contribute significantly to this national goal.
ONGC’s renewable portfolio, under its subsidiary ONGC Videsh, is already diversified and spans various projects across solar and wind energy. In recent years, ONGC has significantly invested in developing wind power projects in states like Gujarat and Tamil Nadu, and it has a growing solar energy presence. However, the current capacity is a fraction of the ambitious 10 GW goal it has now set for 2030.
ONGC plans to allocate substantial capital towards green energy projects in the coming decade. Acquisitions of existing renewable projects and companies will be a strategic move to accelerate capacity addition.
ONGC is exploring strategic partnerships with domestic and international players in the renewable energy space. These partnerships will provide the necessary technological and financial resources.
ONGC plans to leverage its existing energy infrastructure and operations expertise to drive innovations in renewable energy technology, particularly solar and wind energy.
ONGC is actively engaging with government bodies and policymakers to shape and respond to India’s evolving regulatory landscape for renewable energy.
ONGC aims to develop large-scale renewable projects across various states in India, with a focus on wind and solar energy. Raising the substantial capital required to scale up to 10 GW will be a significant challenge.
The evolving regulatory environment for renewable energy in India could impact ONGC’s plans.
ONGC will need to adapt and develop new capabilities outside its traditional oil and gas domain.
The renewable energy market in India is fiercely competitive, with many established players.
ONGC’s transition towards renewable energy is emblematic of a broader shift occurring in the global energy industry. As one of the largest state-owned enterprises in India, ONGC’s move is a strong statement that aligns with global trends towards sustainability and reducing carbon emissions.
Its commitment could significantly contribute to India’s transition to a cleaner, more sustainable energy future and act as a model for other state-owned and private entities in the country.
ONGC’s ambitious plan to scale up its renewable capacity to 10 GW by 2030 is a significant move that represents a strategic shift for the company. It is about diversifying its portfolio and aligning itself with national and global sustainability goals. The path ahead is laden with financial, technological, and regulatory hurdles.
However, if successful, ONGC’s strategy will solidify its position as a leader in India’s energy sector and contribute significantly to the country’s ambitious renewable energy targets and broader sustainable development goals.
