Oriana Power Ltd Management Discussions

Global Economy ¹²

Overview

Global economic momentum is holding steady, with growth projected at 3.0% in 2025 and 3.1% in 2026. These figures mark a slight improvement over previous forecasts, reflecting stronger-than-expected activity accelerated in advance of anticipated tariffs, easing financial conditions due to a weaker US dollar, and fiscal expansion in several major economies. Additionally, lower average effective US tariff rates than initially announced, have helped moderate near-term uncertainty. Global headline inflation is expected to decline to 4.2% in 2025 and 3.6% in 2026, in line with prior projections. However, inflation trends are not uniform across countries, remaining elevated in the United States while being more subdued in other large economies.

Despite these positive signals, the global landscape remains fraught with challenges. Tariff-related uncertainty, geopolitical tensions, supply chain disruptions, and growing fiscal deficits pose significant downside risks. Tightening financial conditions, especially if long-term interest rates rise further, could dampen investment and market confidence. Meanwhile, economic fragmentation continues to threaten stability and integration in global markets.

Outlook

The global economy is entering a period of heightened uncertainty. Rising trade barriers, geopolitical tensions, and policy unpredictability are dampening sentiment, straining supply chains, and weakening recovery momentum. A modest rebound is expected in 202627, though output is likely to remain below earlier projections. Emerging and developing economies may continue to face challenges in reducing poverty and closing income gaps. While downside risks persist· ranging from financial stress and extreme weather to worsening conflicts·there are upside possibilities if durable trade agreements and stronger multilateral coordination emerge. A coherent policy response focused on rebuilding fiscal buffers, maintaining financial stability, and advancing institutional and structural reforms is essential.

Indian Economy ^{3 4 5}

Overview

India continues to consolidate its position as one of the worlds fastest-growing major economies, climbing to the fourth-largest globally by end-2025. The economy posted a robust 7.4% expansion in the final quarter of FY25 and 6.5% growth for the full fiscal year, underscoring the strength of domestic demand, steady investments, and a recovery in rural consumption, even amid global headwinds. Looking ahead, the IMF projects growth at 6.4% in both FY25 and FY26 (6.7% on a calendar-year basis for 2025 and 6.4% for 2026).

This sustained performance is driven by a combination of factors, including robust private consumption, a continued emphasis on public investment, and a strong reform momentum across sectors. Structural reforms aimed at improving infrastructure, digital inclusion, and financial access have helped reinforce investor confidence and domestic demand. The IMF has acknowledged this stable growth path as a result of Indias proactive policy framework, highlighting it as a key contributor to global economic resilience.

Outlook

Looking ahead, Indias medium-term economic outlook remains positive, supported by its reformcentric approach and favourable demographic profile. However, maintaining this growth momentum will require addressing long-standing structural challenges and unlocking the full potential of the labour force. A key priority will be accelerating employment generation, particularly in non-farm sectors, by reskilling the workforce, promoting labour market flexibility, and enabling productive shifts from agriculture to industry and services. Sustaining inclusive growth calls for continued focus on infrastructure, education, and social protection, along with efforts to ease regulations and advance land and trade reforms. Policy continuity, institutional reform, and a competitive business environment can attract long-term investment and support Indias journey toward becoming a $5 Trillion economy.

Global demand for renewable hydrogen and e-fuels is projected to reach 0.17 EJ by 2030, largely driven by policies in Europe, the US, and China. These fuels target aviation, maritime, and heavy transport, but high costs and limited policy support hinder scalability. In Europe, RED III, ReFuelEU Aviation, and UK SAF mandates are boosting uptake, especially in refineries and air transport. The US supports growth through IRA tax credits and fuel standards, making hydrogen and e-kerosene more cost- competitive. In China, fuel-cell vehicles drive demand. Global shipping companies are also entering offtake agreements for ammonia and methanol, totalling around 40 PJ, further stimulating demand in the maritime sector.

Compressed Biogas (CBG) Sector¹²

The global CBG market is projected to grow from $7.32 Billion in 2023 to $18.07 Billion by 2031 at a CAGR of 11.96%, driven by low-carbon energy adoption, supportive regulations, climate commitments, and demand for sustainable fuels. Countries like Germany, Sweden, and the US are integrating CBG into energy and transport systems. Technological improvements, falling production costs, and strong policy incentives are boosting adoption. CBG offers stability against fossil fuel price volatility and supports local waste-to- energy transitions. Increasing partnerships between waste management and energy producers, along with corporate sustainability goals, continue to drive growth in line with global climate targets.

Indian Renewable Energy Industry¹³, ^{14 15}

India is rapidly emerging as one of the worlds most dynamic renewable energy markets, driven by growing electricity demand, favourable policy frameworks, and long-term climate commitments. As of FY25, the countrys installed renewable energy capacity has reached 227 GW, comprising solar, wind, biomass, waste- to-energy, and small hydro sources. Solar energy has led this expansion, contributing 23.83 GW in FY25, a sharp increase from 15.03 GW the previous year. Wind energy continues to grow steadily, with over 50 GW installed and a target of 100 GW by 2030. Hydropower remains a vital component, with total capacity expected to grow from 42 GW to 67 GW by 2031-32, supported by 15 GW of projects currently under construction.

Indias CBG sector is expanding steadily through policy support and clean energy goals. The governments SATAT scheme, launched in 2018, targets the establishment of 5,000 CBG plants, with 53 commissioned as of March 2024. Complementary programmes like GOBAR-Dhan and the New National Biogas Organic Manure Programme promote investment in waste- to-energy infrastructure. CBG supports Indias goals of cutting methane emissions, boosting rural incomes, and strengthening energy independence. Its role in decarbonising transport and industry makes it a strategic clean fuel. With growing demand for sustainable practices, corporate interest, and government incentives, CBG is poised to play a key role in Indias energy mix and environmental commitments in the coming years.

• Energy Security and Reduced Imports: Indias 85% reliance on crude oil imports remains a strategic vulnerability. To strengthen energy security, the government is promoting domestic exploration and diversifying into biofuels and green hydrogen.

• Annual Capacity Addition: India added 29.52 GW of renewable energy capacity in FY25, the highest ever in a single year, taking total installed capacity to 220.10 GW, up from 198.75 GW in FY24. This marks a significant step toward meeting the countrys climate and energy security goals under the “Panchamrit” commitments.

• Rise of Renewables and Green Hydrogen:

Investments in solar, wind, and storage are driving Indias green hydrogen roadmap. Industrial collaboration and global partnerships are accelerating progress, though scaling will hinge on demand creation.

• Technology Integration and Digitalisation: Discoms are adopting smart meters and AI-driven tools to improve efficiency, reduce losses, and enable data-led planning, advancing intelligent energy infrastructure.

• Strengthened Power Distribution and Cybersecurity:

Discoms are complying with CEAs resource adequacy planning (RAP) mandates to secure long-term generation while building cyber-resilient infrastructure.

• Progressive Regulatory Reforms: Reforms such as the Oilfields (Regulations and Development) Amendment Act, 2025, seek to simplify upstream investments and improve ease of doing business. Policies on skilling, restructuring, and tech adoption aim to modernise energy governance.

• Clean Energy Pipeline: India has a strong pipeline of renewable projects, with 169.40 GW under implementation and 65.06 GW tendered. This includes hybrid, round-the-clock (RTC), peaking power, and thermal and RE bundling projects, aimed at enhancing grid reliability and ensuring a stable supply of clean energy.

Growth Drivers (India)^{26, 27}

Government Commitments

• Renewable Energy Targets: India has set ambitious renewable energy goals·scaling capacity from 175 GW to 500 GW by 2030, as pledged at COP26, and further to 2,100 GW by 2047, as announced at the Brainstorming Session on the Indian Power Sector Scenario 2047·reflecting its long-term vision of achieving net-zero emissions by 2070.

• National Hydrogen Mission: A $2.4 Billion initiative aims to produce 5 MMT of green hydrogen by 2030

• PM Surya Ghar Muft Bijli Yojana (February 2024):

Launched to provide free rooftop solar electricity to one crore households, backed by subsidies and concessional loans.

• PM JI-VAN Yojana (2024 Amendment): Supports 2G bioethanol projects using agricultural residues. Over Rs.908 Crore ($106.7 Million) sanctioned, including commercial-scale projects in Panipat, Haryana.

Investments

• Rajasthan-NTPC Green Energy MoU: The

Government of Rajasthan signed an MoU with NTPC Green Energy to develop 28,500 MW of renewable energy projects as part of a 31,825 MW power portfolio, with a total investment of Rs.1.6 Lakh Crore ($19.18 Billion). The initiative aims to boost Rajasthans renewable capacity and achieve energy self-reliance.

Favourable Policies and Incentives

• India-Netherlands Clean Energy Corridor: A

green and digital corridor is being established between Indian ports and the Port of Rotterdam to deepen bilateral cooperation in clean energy and logistics infrastructure.

• National Green Hydrogen Mission: Approved with an outlay of Rs.19,744 Crore ($2.37 Billion), including Rs.17,490 Crore for the SIGHT programme, Rs.1,466 Crore for pilot projects, Rs.400 Crore for R&D, and Rs.388 Crore for other components.

• PLI Scheme for Solar PV (Atmanirbhar Bharat):

Under Tranche-II of the PLI Scheme for high-efficiency solar PV modules, Rs.19,500 Crore ($2.35 Billion) was allocated. Letters of Award were issued in April 2023 to establish 39,600 MW of integrated PV module manufacturing capacity.

Company Overview

About Oriana Power Limited

The Company is engaged across the renewable energy value chain, including solar power projects engineering, procurement, and construction (EPC), power generation, compressed biogas, battery energy storage systems (BESS), green hydrogen and e-fuels, as well as leasing, operation, and maintenance services of the above stated. It also undertakes construction, installation and maintenance of related power infrastructure such as power stations, cables, and lines.

Together with its subsidiaries, the Company has an installed and commissioned capacity exceeding 400 MWp and a further ~550 MWp under execution as at March 31, 2025. Energy generated is also sold under long-term Power Purchase Agreements (PPA) executed by subsidiaries.