Ujaas Energy Ltd Management Discussions

Economy Overview

The World Economic Outlook (WEO) is a survey of prospects and policies by the IMF staff, usually published twice a year, with updates in between. It presents analyses and projections of the world economy in the near and medium term, which are integral elements of the IMFs surveillance of economic developments and policies in its member countries and of the global economic system. They consider issues affecting advanced, emerging and developing economies, and address topics of pressing current interest.

The latest World Economic Outlook reports a slowdown in global growth as downside risks intensify. While policy shifts unfold and uncertainties reach new highs, policies need to be calibrated to rebalance growth-inflation trade-offs, rebuild buffers, and reinvigorate medium-term growth, thereby reducing both internal and external imbalances. Policies that promote healthy aging, bridge gender disparities, and enhance the alignment of migrants skills with local labor market demands can play a crucial role in countering slow economic growth and fiscal pressures, especially when coupled with infrastructure investment.

Global growth: divergent and uncertain

Global growth is projected at 3.3 percent both in 2025 and 2026, broadly unchanged from the October 2024 World Economic Outlook (WEO) forecast with an upward revision in the United States offsetting downward revisions elsewhere. The near-term outlook is characterized by divergent paths, while medium-term risks to growth are tilted to the downside. Renewed inflationary pressures could interrupt the monetary policy pivot, with implications for fiscal sustainability and financial stability. The policy mix should balance trade-offs and rebuild buffers.

Global Growth Outlook

Global GDP growth stabilized at 2.8% in 2024 but is projected to decline to 2.6% in 2025 and 2026 due to geopolitical tensions and rising protectionism. The US and China are expected to slow, while India maintains strong growth above 6%.

Impact of US Tariffs

The reintroduction of US trade tariffs led to downward revisions in euro area growth forecasts. The European Commission now expects Eurozone GDP to grow by just 0.9% in 2025, down from 1.3%, with Austria seeing the sharpest downgrade to -0.3%.

Indian Economy Overview

Indias near-term outlook

We now expect India to grow between 6.5% and 6.8% in fiscal year 2024 to 2025, in our baseline scenario. Although admittedly lower than previously estimated, because of a slower first half of the year, we expect strong domestic demand in the second half, driven by a significant uptick in government spending).

This will be followed by growth between 6.7% and 7.3% in fiscal year 2025 to 2026, with significant downside risks (hence a wider range; figure 1). Indias growth projections in the subsequent year will likely be tied to broader global trends, including rising geopolitical uncertainties and a delayed synchronous recovery in the West than anticipated. Disruptions to global trade and supply chain due to intensifying geopolitical uncertainties will also affect demand for exports. Despite these challenges, we will continue to see the difference between actual GDP and no–COVID-19 levels progressively narrowing as growth picks up pace (for more on our baseline and pessimistic scenario assumptions, see "Key assumptions for Deloittes projections").

Inflation concerns are back, but with strong agricultural output and proactive government interventions improving the food supply chain, inflation may remain range-bound, although above the RBIs comfort level. Inflation may ease early next fiscal year, and we expect inflation to slowly revert to the central banks target of 4% from early next year and remain within range over the forecast period (figure 2)

Capital market resilience is changing investment dynamics

GFCF, a critical metric for investment activity and one of the steadfast growth engines over the past four years, slowed down the past quarter. This has caused concern for domestic demand, underscoring the challenges causing the slowdown in growth. Slowing government spending on capex: One of the primary reasons for the second-quarter decline was subdued public capital expenditure at both central and state levels. This dip is attributable to the election cycle at the center and a few key states and monsoon-related disruptions. At the state level, of the top five states by economic size, not only has there been low utilization of capex budgets, but for three of these five states, this utilization has fallen from the previous year (figure 3). We expect this drop in capex spending to be temporary and expect a revival as government spending picks up post elections, particularly in areas such as infrastructure.

Key assumptions for Deloittes projections

Deloittes assumptions can be grouped into two buckets, namely an "optimistic" and a "pessimistic" scenario, with the former being more likely.

Optimistic scenario

The world will enjoy synchronous growth in the latter half of 2025 with minimal impact of regional or trade wars on global supply chains and the economy. Government changes in the advanced economies do result in some policy shifts, but the implications on trade and investments are limited. These economies see strong rebounds over the next two years. In India, political stability, policy continuity, and strong reforms increase investor confidence and boost investment, leading to increased jobs and higher income.

The US Federal Reserve will cut policy rates at least twice as indicated next year as inflation moderates.

Stimulus in China helps the country recover in the short run leading to better trade and investment.

Crude oil prices remain range-bound due to a balanced demand from emerging nations and a supply of crude oil from the United States.

The RBI maintains a tighter monetary policy till early this year to keep inflation under check, a vigil on unsecured lending, and the interest differential with the US Fed policy rate attractive for global investors.

Government efforts toward expense consolidation continue, supported by buoyant revenues and higher dividends from public sector undertakings and the RBI. However, government ramps up capex spending on key infrastructure projects.

The dollar price index appreciates initially but then remains range-bound. This could cause marginal volatility in the Indian rupee, but the RBI is vigilant against fluctuations.

Pessimistic scenario

Regions with ongoing conflicts see prolonged uncertainties, with wars in the Middle East spreading into other parts of the world. Because of political and policy changes, the United States and Europe enter stretches of recession, and investment and trade scenarios worsen. Chinas economy slows down, and supply disruptions cause high inflation. Monetary policy remains tight in both the West and India.

Sources: https://www.deloitte.com/us/en/insights/topics/economy/ asia-pacific/india-economic-outlook.html

India Renewable Energy

Indias energy demand is expected to increase more than that of any other country in the coming decades due to its sheer size and enormous potential for growth and development. Therefore, most of this new energy demand must be met by low-carbon, renewable sources. Indias announcement India that it intends to achieve net zero carbon emissions by 2070 and to meet 50% of its electricity needs from renewable sources by 2030 marks a historic point in the global effort to combat climate change.

India was ranked fourth in wind power capacity and solar power capacity, and fourth in renewable energy installed capacity, as of 2023. Installed renewable power generation capacity has increased at a fast pace over the past few years, posting a CAGR of 15.4% between FY16 and FY23. India has 125.15 GW of renewable energy capacity in FY23. India is the market with the fastest growth in renewable electricity, and by 2026, new capacity additions are expected to double. With the increased support of the Government and improved economics, the sector has become attractive from an investors perspective. As India looks to meet its energy demand on its own, which is expected to reach 15,820 TWh by 2040, renewable energy is set to play an important role.

Green Energy Corridor Overview

In year 2012, a study was conducted by Power Grid Corporation of India Limited (PGCIL) wherein it was found that power evacuation and transmission infrastructure in near vicinities of potential sites was less and therefore, dedicated transmission infrastructure for large scale solar and wind power plants was planned. The Green Energy Corridor (GEC) report was submitted by PGCIL in September 2012. Based on PGCILs report, the states prepared their own transmission plans & submitted to Central Electricity Authority (CEA) for appraisal. The implementation work started in 2015, after due approval process. There are two schemes under the Green Energy

Corridors:

1 - Intra-State GEC Phase-I 2 - Intra-State GEC Phase-II

Intra-State GEC Phase-I

The Intra-State Transmission System (InSTS) GEC-I scheme is being implemented by eight renewable rich States, namely Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan and Tamil Nadu. The scheme is implemented by respective State Transmission Utilities (STUs). The scheme is for setting up approx. 9700 ckm transmission lines and 22600 MVA substations in order to facilitate integration of approx. 24 GW of renewable generation capacity. The total project cost is Rs. 10141.68 crore with funding mechanism consisting of 40% Central Financial Assistance from MNRE (Rs. 4056.67 crores), 40% loan from KfW Germany (EUR 500 Million) and 20% Equity from STU.

Intra-State GEC Phase-II

The Intra-State Transmission System (InSTS) GEC-II scheme is being implemented by seven States, namely Gujarat, Himachal Pradesh, Karnataka, Kerala, Rajasthan Tamil Nadu, and Uttar Pradesh. The scheme is implemented by respective State Transmission Utilities (STUs).

The scheme is for setting up approx. 10750 ckm transmission lines and 27500 MVA substations in order to facilitate integration of approx. 20 GW of renewable generation capacity. The total project cost is Rs. 12031.33 crore with funding mechanism consisting of 33% Central Financial Assistance from MNRE (Rs. 3970.34 crores) and balance 67% to be arranged by STU. The balance 67% funds are also available as loan from IREDA/REC/PFC/KfW.

Sources: https://mnre.gov.in/en/green-energy-corridors/

Renewable Energy Market Size& 24-25 Growth Indias Renewable Energy Capacity Achieves Historic Growth in FY 2024-25 Total Installed RE Capacity Reaches 220.10 GW with a Record Addition of 30 GW

Solar at 106 GW; Wind Power Crosses 50 GW Milestone

The Ministry of New and Renewable Energy (MNRE) has reported robust progress in Indias clean energy sector for the Financial Year 2024–25. With a record annual capacity addition of 29.52 GW, the total installed renewable energy (RE) capacity in the country has reached 220.10 GW as of 31st March

2025, up from 198.75 GW in the previous fiscal. This performance reflects Indias steady advancement towards the target of achieving 500 GW of non-fossil fuel-based capacity by 2030, as part of its commitments under the ‘Panchamrit goals set by Prime Minister Shri Narendra Modi.

Solar Energy Drives Growth

Solar energy contributed the most to the years capacity expansion, with 23.83 GW added in FY 2024–25, a significant increase over the 15.03 GW added in the previous year. The total installed solar capacity now stands at 105.65 GW. This includes 81.01 GW from ground-mounted installations, 17.02 GW from rooftop solar, 2.87 GW from solar components of hybrid projects, and 4.74 GW from off-grid systems. The growth demonstrates continued uptake of solar energy across utility-scale and distributed categories.

Steady Rise in Wind Installations

Wind energy also witnessed sustained progress during the year, with 4.15 GW of new capacity added, compared to 3.25 GW in FY 2023–24. The total cumulative installed wind capacity now stands at 50.04 GW, reinforcing wind energys role in Indias renewable energy mix.

Bioenergy and Small Hydro Power Maintain Momentum

Bioenergy installations reached a total capacity of 11.58 GW, which includes 0.53 GW from off-grid and waste-to-energy projects. Small Hydro Power projects have achieved a capacity of 5.10 GW, with a further 0.44 GW under implementation. These sectors continue to complement the solar and wind segments by contributing to the decentralised and diversified nature of Indias energy landscape.

Expanding Pipeline of Clean Energy Projects

In addition to the installed capacities, India has 169.40 GW of renewable energy projects under implementation and 65.06 GW already tendered. This includes 65.29 GW from emerging solutions such as hybrid systems, round-the-clock (RTC) power, peaking power, and thermal + RE bundling projects. These initiatives represent a strategic shift towards ensuring grid stability and reliable supply from renewable sources. MNRE under Union Minister of New and Renewable Energy Shri Pralhad Joshi has been taking various key initiatives to achieve Prime Minister Shri Narendra Modis vision of 500 GW of renewable energy by 2030. The continued growth reflects Indias commitment to its climate goals and energy security, underscoring the Governments focused efforts to scale up renewable energy deployment across the country.

Sources: h t t p s : / / w w w . p i b . g o v . i n / P r e s s R e l e a s e P a g e . aspx?PRID=2120729#

Investments/ Developments

Some major investments and developments in the Indian renewable energy sector are as follows:

n India is set to significantly boost its renewable energy investments, with a projected increase of 83% to approximately US$ 16.5 billion in 2024, as part of its strategy to transition to cleaner energy sources and reduce carbon emissions. n India is set to invest over US$ 360 billion in renewable energy and infrastructure by 2030, with US$ 190 billion to US$ 215 billion needed to achieve 500 GW of renewable capacity. An additional US$ 150 billion to US$ 170 billion will be required for electricity transmission and storage.

n Brookfield Asset Management plans to boost its investments in Indias renewable energy sector to over US$ 10 billion in the next three to four years, also exploring electric vehicles and green hydrogen.

Indias renewable energy sector set to attract over

US$ 250 billion in investments, with solar PV projects expecting US$ 15.5 billion and battery manufacturing US$ 2.7 billion.

n The Union Budget 2025-26 allocates Rs. 20,000 crore (US$ 2.30 billion) each for nuclear energy and the PM Surya Ghar Muft Bijli Yojana to expand rooftop solar. It also introduces legislative reforms to enhance energy security.

n Indian companies are outpacing global averages in emissions reporting and reduction, with decarbonisation driving significant financial gains, showcasing immense untapped potential in sustainability and AI-driven innovations. n India aims to become a global wind power hub, with policy support driving local manufacturing and a target of capturing 10% of global wind energy demand by 2030.

n Radiance Renewables, an Indian renewable energy developer, and the UKs Private Infrastructure Development Group have formed a joint venture called Radiance Infract Renewables to develop greenfield solar and wind-solar hybrid projects for commercial and industrial clients in India, leveraging their expertise to support the countrys transition towards its net-zero emissions target by 2070.

n Maruti Suzuki India will invest Rs. 450 crore (US$ 54 million) over the next three years in renewable energy projects, including a biogas plant at Manesar and expanding solar capacity. The pilot biogas plant aims to produce 1 lakh cubic meters of biogas in FY 2024-25, offsetting 190 tonnes of CO2 annually. Solar capacity will grow from 43.2 MWp to 78.2 MWp by FY 2025-26, supporting Suzukis Environment Vision 2050.

n NTPC Green Energy Ltd. will invest Rs. 80,000 crore (US$ 9.59 billion) in Maharashtra for green hydrogen, ammonia, and methanol projects, including 2 GW pumped storage and up to 5 GW renewable energy projects, as part of a plan to build 60 GW renewable capacity by 2032.. n On January 4, 2024, Torrent Power signed four initial pacts with the Gujarat government to invest Rs 47,350 crore (US$ 5.70 billion) in renewable energy, green hydrogen, and electricity distribution. These investments are aimed at contributing to the states development and creating employment opportunities. n January 8, 2024, Tata Power announced a On

Rs 70,000 crore (US$ 8.42 billion) investment to develop 10 GW of solar and wind power capacity in Tamil Nadu over the next 5-7 years. This aligns with its goal of achieving 70% clean energy production by 2030.

n Eco Wave Power and Bharat Petroleum signed an MoU at India Energy Week 2025 to develop wave energy in India, estimated at 40,000 MW. The agreement, witnessed by Minister Hardeep Singh Puri, aims to integrate wave power into Indias renewable energy mix.

n 59 solar parks with an aggregate capacity 40 GW have been approved in India.

n Solar Parks in Pavagada (2 GW), Kurnool (1 GW) and Bhadla-II (648 MW) are included in the top 5 operational solar parks of 7 GW capacity in the country. n The worlds largest renewable energy park of 30

GW capacity solar-wind hybrid project is under installation in Gujarat.

n India offers a great opportunity for investments in the RE sector; $196.98 Bn worth of projects are underway in India.

n Wind Energy has an offshore target of 30 GW by

2030 with 3 potential sites identified. n Delhis Indira Gandhi International Airport (IGIA) has become the first Indian airport to run entirely on hydro and solar power. The onsite solar power plants meet around 6% of the airports electricity requirement.

n Ayana Renewable Power Pvt Ltd (Ayana) announced plans to set up renewable energy projects totalling 2 gigawatts (GWs) with an investment of Rs. 12,000 crore (US$ 1.53 billion) in Karnataka. n The Solar Energy Corporation of India (SECI) implemented large-scale central auctions for solar parks and has awarded contracts for 47 parks with over 25 GW of combined capacity.

Government initiatives n Some initiatives by the Government of India to boost Indias renewable energy sector are as follows:

The Pradhan Mantri Jaiv Indhan - Vatavaran

Anukool Fasal Awashesh Nivaran (PM JI-VAN) Yojana, amended in 2024, aims to provide financial support for advanced bioethanol projects using renewable feedstocks. Over Rs. 908 crore (US$ 106.7 million) has been approved for 2G bioethanol projects, including commercial-scale initiatives in Panipat, Haryana. n Rajasthan The government signed an MoU with NTPC Green Energy for 28,500 MW of renewable energy-based projects, as part of the total 31,825 MW of power generation projects worth Rs 1.6 lakh crore (US$ 19.18 billion). This massive renewable energy investment is aimed at making Rajasthan self-reliant in the energy sector and significantly expanding the states renewable power capacity.

n In the Interim Budget for 2024-2025, The

Government of India doubled funding for the National Green Hydrogen Mission, allocating Rs. 600 crores (US$ 72 million). Additionally, Indian conglomerates plan to invest US$ 800 billion (Rs. 67,42,400 crore) in green hydrogen, clean energy, semiconductors, and EVs.

Government plans to invest Rs. 9,12,000 crore n (US$ 107.89 billion) in power transmission infrastructure by 2032 to boost capacity and support growing electricity demand.

of January 2, 2024, the Government of India As is implementing the Production Linked Incentive (PLI) Scheme for the National Programme on High Efficiency Solar PV Modules, aimed at achieving gigawatt-scale manufacturing capacity. Under Tranche-II, with a budget allocation of Rs 19,500 crore (US$ 2.35 billion), n provided great support to the industry and spurred unprecedented growth.

n Nationally Determined Contribution (NDC) targets will be further strengthened by this approval, which will also aid in attracting foreign and domestic capital to green projects.

Sources:https://www.ibef.org/industry/renewable-energy

n Solar rooftop are the installation of solar panels on the rooftops of buildings or other structures to harness solar energy for electricity generation. This decentralized approach to solar power generation allows individuals, businesses, and communities to generate their clean energy, reducing reliance on traditional grid electricity and contributing to sustainability efforts. Solar rooftop systems consist of photovoltaic (PV) panels, inverters to convert solar energy into usable electricity, n mounting structures to secure the panels to the rooftop, and often include monitoring systems to track energy production. The top 5 states in rooftop capacity- Maharashtra, Rajasthan, Tamil Nadu, Gujarat, and Karnataka accounted for about 52% of total installed capacity.

https://mnre.gov.in/en/physical-progress/ https://www.maximizemarketresearch.com/market-report Solar EPC Market Size The global solar EPC market was valued at USD 407.6 billion in 2024 and is estimated to grow at a CAGR of 8.1% from 2025 to 2034. Solar EPC firms are focusing on reducing the environmental impact of their projects, offering sustainable solutions, and aligning with global environmental goals. Investors and customers are increasingly prioritizing companies with strong sustainability practices.

https://www.gminsights.com/industry-analysis/solar-epc-marke India Solar Power Market Size 2025-2029

Companies looking to capitalize on these opportunities should focus on collaborating with local partners, investing in research and development, and offering comprehensive energy solutions to navigate these challenges effectively. Indias strategic location, large population, and growing energy demand make it an essential market for solar power players seeking to expand their global footprint.

The India solar power market size is forecast to increase by USD 754 billion billion at a CAGR of 42.4% between 2024 and 2029.

The India Solar Power Market can be segmented by

Application (grid-connected, off-grid), End-user (utility, rooftop), Technology (solar photovoltaic (PV), concentrated solar power (CSP)), Component (solar panels, Inverters, batteries, mounting systems), and Geography (India). This comprehensive segmentation allows for a detailed analysis of the market dynamics, from large-scale power generation to decentralized solutions and the underlying technologies and components driving growth across different regions. The market presents significant growth opportunities for global investors and businesses seeking to expand their renewable energy footprint. Key drivers include increasing investments in renewable energy, with the Indian government committing to achieving 175 GW of renewable energy capacity by 2022. Additionally, the declining costs of solar energy, driven by technological advancements and economies of scale, make India an attractive market for solar power adoption. However, the market faces challenges, such as the availability of other energy sources and the intermittency of solar power, necessitating the need for energy storage solutions and grid integration

Sources: https://www.technavio.com/report/solar-power-market-industry-in-india-analysis Solar PV Operations and Maintenance Market–Forecast (2024-2030)", by Industry ARC

The solar PV operations and maintenance market size is forecast to reach USD 10.9 billion by 2030, after growing at a CAGR of 14.8% during 2024-2030.

Solar PV operation & maintenance (O&M) is one of the most interpretative ways to ensure that the solar power system gives the best feasible generation. Conducting regular O&M ensures optimal performance of photovoltaic (PV) systems while keeping down the risks of soiling, micro-cracking, internal corrosion, and other problems. The solar PV operation and maintenance market so far has seen exceptional growth, with numerous mileposts having been fulfilled in terms of the number of installations, cost depletion, and technological development. It is significant to note that reducing carbon dioxide emissions is currently the focal point of global efforts toward shifting to cleaner forms of energy. This aspect, coupled with mounting concerns concerning climate change as well as the impact of air pollution on health has supplemented the demand for solar photovoltaics across the world.

Transmission

India Transmission Line market is expected to observe a CAGR of 3.80% during the forecast period FY2025- FY2032, rising from USD 5.35 billion in FY2024 to USD 7.21 billion in FY2032. Transmission lines are crucial for Indias energy infrastructure as these lines allow efficient electricity transmission from power-producing sources to the customers. With the acceleration of the countrys industrial growth and urbanization, the overall demand for electricity supply is increasing exponentially. Moreover, transmission lines help to incorporate renewable energy sources such as solar and wind into the grid, thereby boosting sustainability. These lines improve grid stability and reduce transmission losses, resulting in efficient energy distribution across long distances, thereby augmenting market growth. Finally, a strong transmission infrastructure is crucial for economic development, energy security, and satisfying the demands of an expanding population.

For instance, in October 2024, the National Electricity Plan was introduced by the Cabinet Minister for Power and Housing & Urban Affairs. The plan highlighted the development of nearly 191,000 circuit kilometres (ckm) of transmission lines to improve the countrys energy infrastructure by FY2032. Moreover, the plan stated that the inter-regional transmission capacity is anticipated to expand to 143 GW by FY2027 and 168 GW by FY2032, compared to the current level of 119 GW.

Sources: https://www.marketsandata.com/industry-reports/india-transmission-line-market India Electric Two wheeler Industry India Electric Two-Wheeler Market is forecast to grow at a CAGR of 28.34% during the forecast period between FY2025-FY2032 and was valued at USD 1.6 billion in FY2024. Being one of the largest two-wheeler marketplaces in the world, Indias electric two-wheeler market is driven by rising environmental concerns among consumers, government schemes offering rebates and subsidies on usage of electric vehicles to promote reduced carbon emissions.

A shift towards electric mobility has become essential in India to control the adverse environmental impacts which is being caused by the increasing vehicles on the road. Electric two-wheelers are small, self-propelled vehicles that run on either a rechargeable battery or an integrated electric motor. They are an environmentally friendly replacement to other forms of transportation since they are lightweight, adaptable, durable, affordable, fuel-efficient, and fuel-efficient. The compact electric two-wheelers are becoming more popular since they make it possible to travel short distances faster and avoid traffic bottlenecks.

Environmental Consciousness coupled with Social Influence driving market growth Fossil fuels like, diesel, petrol and natural gas are used for transportation, carbon dioxide (CO2) is released into the atmosphere, compromising both human health and the environment. Electric vehicle (EV) production and promotion are significant steps in this approach. They lead to less noise pollution, zero carbon emission, better air quality, and overall fuel savings. Indian population is becoming highly conscious of the environmental concerns and switching to eco-friendly modes of transport, including electric two-wheelers. Moreover, India being a highly social nation, influence from peer, family members, celebrities and social media adds to the adoption preferences of buyers in the country.

Technological Advancements Drive Market Growth

Technological advancements are considerably driving the growth of the electric two-wheeler market in India. Innovations in battery technology, charging infrastructure, and smart features make electric two-wheelers more efficient and appealing to consumers. Government-supportive policies, such as subsidies and incentives, further accelerate the adoption of electric two-wheelers. Manufacturers are expanding their offerings. The increasing focus on sustainability and reducing carbon emissions encourages consumers to shift towards electric two-wheelers. These technological and policy-driven developments are creating an ecosystem for electric mobility in India, promising a greener and more efficient future for transportation. Many companies are launching new electric two-wheelers and several acquisitions for charging stations.

Government scheme Accelerating Market Growth

By providing subsidies for the purchase of electric vehicles, the government of India is helping the industry grow at a faster pace. In line with this, these incentives have increased the consumer acceptability of battery-powered scooters and motorbikes. Tax deductions, purchase reimbursements, and financial incentives are some supportive initiatives for EV buyers. As a result, the government is offering subsidies through the FAME II (Faster Adoption and Manufacture of EVs) scheme and separate state EV policies to encourage the adoption of electric vehicles https://evreporter.com/indias-electric-vehicle-sales-trend

Overall EV adoption projection in India

Consequently, the overall EV adoption rates are expected to reach 10-12% of annual sales by FY26 and 30-35% by FY30.