Ujaas Energy Ltd Management Discussions

The baseline forecast is for the world economy to continue growing at 3.2 percent during 2024 and 2025, at the same pace as in 2023. A slight acceleration for advanced economies—where growth is expected to rise from 1.6 percent in 2023 to 1.7 percent in 2024 and 1.8 percent in 2025—will be offset by a modest slowdown in emerging market and developing economies from 4.3 percent in 2023 to 4.2 percent in both 2024 and 2025. The forecast for global growth five years from now—at 3.1 percent—is at its lowest in decades. Global inflation is forecast to decline steadily, from 6.8 percent in 2023 to 5.9 percent in 2024 and 4.5 percent in 2025, with advanced economies returning to their inflation targets sooner than emerging market and developing economies. Core inflation is generally projected to decline more gradually.

Economic activity was surprisingly resilient through the global disinflation of 2022—23. As global inflation descended from its mid-2022 peak, economic activity grew steadily, defying warnings of stagflation and global recession. Growth in employment and incomes held steady, reflecting supportive demand developments including greater-than-expected government spending and household consumption— and a supply-side expansion amid, notably, an unanticipated boost to labor force participation. The unexpected economic resilience, despite significant central bank interest rate hikes aimed at restoring price stability, also reflects the ability of households in major advanced economies to draw on substantial savings accumulated during the pandemic

Global growth, estimated at 3.2 percent in 2023, is projected to continue at the same pace in 2024 and 2025. The forecast for 2024 is revised up by 0.1 percentage point from the January 2024 World Economic Outlook (WEO) Update, and by 0.3 percentage point from the October 2023 WEO. The pace of expansion is low by historical standards, owing to both near-term factors, such as still-high borrowing costs and withdrawal of fiscal support, and longer-term effects from the COVID-19 pandemic and Russias invasion of Ukraine; weak growth in productivity; and increasing geo- economics fragmentation. Global headline inflation is expected to fall from an annual average of 6.8 percent in 2023 to 5.9 percent in 2024 and 4.5 percent in 2025, with advanced economies returning to their inflation targets sooner than emerging market and developing economies. The latest forecast for global growth five years from now at 3.1 percent is at its lowest in decades.

Risks to the global outlook are now broadly balanced. On the downside, new price spikes stemming from geopolitical tensions, including those from the war in Ukraine and the conflict in Gaza and Israel, could, along with persistent core inflation where labor markets are still tight, raise interest rate expectations and reduce asset prices. A divergence in disinflation speeds among major economies could also cause currency movements that put financial sectors under pressure. High interest rates could have greater cooling effects than envisaged as fixed-rate mortgages reset and households contend with high debt, causing financial stress. In China, without a comprehensive response to the troubled property sector, growth could falter, hurting trading partners. Amid high government debt in many economies, a disruptive turn to tax hikes and spending cuts could weaken activity, erode confidence, and sap support for reform and spending to reduce risks from climate change. Geo-economics fragmentation could intensify, with higher barriers to the flow of goods, capital, and people implying a supply-side slowdown. On the upside, looser fiscal policy than necessary and assumed in projections could raise economic activity in the short term, although risking more costly policy adjustment later on. Inflation could fall faster than expected amid further gains in labor force participation, allowing central banks to bring easing plans forward. Artificial intelligence and stronger structural reforms than anticipated could spur productivity. As the global economy approaches a soft landing, the near-term priority for central banks is to ensure that inflation touches down smoothly, by neither easing policies prematurely nor delaying too long and causing target undershoots. At the same time, as central banks take a less restrictive stance, a renewed focus on implementing medium-term fiscal consolidation to rebuild room for budgetary maneuver and priority investments, and to ensure debt sustainability, is in order. Cross-country differences call for tailored policy responses. Intensifying supply- enhancing reforms would facilitate inflation and debt reduction, allow economies to increase growth toward the higher prepandemic era average, and accelerate convergence toward higher income levels. Multilateral cooperation is needed to limit the costs and risks of geo-economics fragmentation and climate change, speed the transition to green energy, and facilitate debt restructuring Sources:

Indias GDP took a big leap on Leap Day in 2024: The countrys remarkable growth rate of 8.4% in the third quarter of the fiscal year 20241 surpassed all expectations, as market analysts had penciled in a slower growth this quarter, between 6.6% and 7.2%. Deloittes projected growth for the quarter was between 7.1% and 7.4% (as published in January 2024).

With substantial revisions to the data from the past three quarters of the fiscal year, Indias GDP growth already touched 8.2% year over year (YoY) in these quarters.

We have revised our growth prediction for this year to a range of7.6% to 7.8%,upfrom our previous estimates due to GDP revisions and stronger-than-expected growth in fiscal 2024. However, we expect growth in the fourth quarter to be modest because of uncertainties related to India 2024 general election and modest consumption growth. Our expectations for the near- term future remain in line with previous forecasts with a slight change in the forecast range due to a higher base effect in fiscal 2024. We believe GDP growth to be around 6.6% in the next fiscal year (fiscal 2025) ond 6.75% in the year after (fiscal 2026), as markets learn to factor in geopolitical uncertainties in their investment and consumption decisions.

We are now seeing the difference between actual GDP from the potential (pre-pandemic GDP levels progressively narrowing as growth picks up pace. We believe that private investments will gain momentum later this year as election-related uncertainties are out of the way, while global liquidity conditions improve as central banks in the West ease their monetary policy stance and cut policy rates.

A synchronous global recovery next year with likely help improve exports while improved capital flows will drive higher investment and consumption. This may lead the Indian government to recalibrate its spending, leading to a faster decline in the fiscal deficit and an increase in private investments.

https://www2.deloitte.com/us/en/insights/economy/asia-pacific/ india-economic-outlook.html

Immense growth potential India has low conventional energy resources compared to its required energy needs driven by a huge population and a rapidly increasing economy. However, India can harness the huge potential of solar energy as it receives sunshine for most of the year. It also has vast potential in the hydropower sector which is being explored across states, especially in the northeast.

As of January 2024, Renewable energy sources, including biomaee, waste to power and waste to energy have a combmed installed capacity of 136.6 GW.

India is the only country among the G20 countries that is on track to achieve its targets under the Paris Agreement. Indias installed renewable energy capacity is expected to increase to about170 GW by March 2025 from the level of 135 GW as of December 2023, according to research agency ICRA .Generation capacity has increased at a healthy pace

The International Energy Agencys World Energy Outlook projects a growth of renewable energy supply to 4,550 GW in 2040 on a global basis.

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.

As of February 2024, 42.25% of the total power installed capacity is from non-fossil-based sources, which fulfils the target of 40% by the end of 2022.

The country plans to reach 450 GW of installed renewable energy capacity by 2030, with 280 GW (over 60%) expected from solar power. The ambitious target of 450 GW will provide investment opportunities worth US$ 221 billion by 2030.

Ministry of New and Renewable Energy targets 500 GW non-fossil-based electricity generation by 2030, as per the Prime Ministers COP26 announcement, with an added installation of 13.5 GW renewable energy capacity in 2023, corresponding to an investment of around Rs. 74,000 crore (US$ 8.90 billion.

Power generation from renewable energy sources (not including hydro) stood at 22.41 billion units (BU) in January 2024, down from 25.79 BU in January 2023.

Power generation from renewable energy sources stood at 309.66 billion units (BU) between April-January 2024, down from 316.75 BU in the same period in the previous year

https://www.ibef.org/download/1716536566_Renewable-Energy- March-2024.pdf

Due to its favorable location in the solar belt (400 S to 400 N), India is one of the best recipients of solar energy with abundant availability.

The installed solar energy capacity has increased by 26 times in the last 9 years and stands at 73.32 GW as of December 2023.

In 2023, India has added 7.5 GW of solar power capacity.

During January 2024, the capacity addition from solar energy stood at 9008.47 MW.

Solar power accounted for 16.9% of the total installed power capacity and 40.1% of the total installed renewable capacity at the end of December 2023. Solar powers share increased by 0.3% from the last quarter, when it accounted for 39.5% of the total renewable capacity.

India has generated 75.57 BU of solar power in the first eleven months of FY24.

Top 10 state-wise solar installations in India (April 2023)

As of January 2, 2024, the Government of India is implemented the Production Linked Incentive (PLI) Scheme for the National Program 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), Letters of Award were issued in April 2023 for the establishment of 39,600 MW of fully or partially integrated solar PV module manufacturing units.

The worlds largest floating 600 MW solar energy project will be constructed at the Omkareshwar Dam in the Khandwa district of Madhya Pradesh at the estimated cost of Rs. 3,000 crores.

Union Budget 2023-24 envisions to create sustainable cities of tomorrow. To translate this, states and cities will be encouraged to undertake urban planning reforms and actions to transform our cities into sustainable cities of tomorrow.

A rapid shift from fossil fuels to clean renewable energy could lead to the creation of 1.5 crore new jobs in India by 2025 and increase savings on electricity bills.

Prime Minister Mr. Narendra Modi initially set the target of installing 175 GW of renewable energy capacity by 2030, but has now increased it to 450 GW.

US$ 2.4 billion National Hydrogen Mission for production of 5 MMT by 2030 and US$ 36 million additional in budget.

The Indian governments commitment to reaching net-zero emissions by 2070 and increasing its renewable energy target to 500 GW by 2030 at the COP26 summit has provided great support to the industry and spurred unprecedented growth

. On February 13, 2024, Prime Minister Mr. Narendra Modi launched PM Surya Ghar Muft Bijli Yojana, offering free rooftop solar electricity to 1 crore households, backed by subsidies and concessional loans

. On December 12, 2023, the Union Minister for New & Renewable Energy and Power reported the installation of 140 MW solar power plants and 2.73 lakh standalone solar pumps under PM-KUSUM, aimed at farmer welfare and environmental sustainability.

Solar city per state-approved and approved setting up 59 solar parks of 40 GW across the nation. The government is also giving a push to Floating PV Projects.

Opportunities

1. PLI SCHEME FOR SOLAR MODULES

-The government allocated Rs. 19,500 crore (US$ 2.57 billion) for a PLI scheme to boost manufacturing of high-efficiency solar modules.

- The government will prioritize the full integration of manufacturing units into solar photovoltaic (PV) modules.

2. NET ZERO EMISSIONS TARGET

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, Rs. 17,490 crores ( US$ 2.10 billion) were allocated for the Green Hydrogen Mission and the Strategic Interventions for Green Hydrogen Transition (SIGHT) Programmed, highlighting a commitment to sustainable energy transition.

In the Interim Budget for 2024-25, the fiscal allocation for solar power grid infrastructure development surged to Rs. 8,500 crores (US$ 1.02 billion), a significant rise from the previous years Rs. 4,970 crores(US$ 0.60 billion). In Budget 2023- 24, Green Growth identified as one of the nodes in th)SAPTARISHl(priorities) In Budet 2023- 24, US$ 1.02billion(Rs. 8,300 crore) central sector support for ISTS in Infrastructure for 13 GW renewable energy from Ladahk was announced.

Rising Power Demand

Indias ambitious renewable energy goals are transforming its power sector. The rising population and widespread electrification in rural homes are fueling the demand for energy to power homes, businesses and communities. The Central Electricity Authority estimates Indips power requirement to grow to reach 817 GW by 2030. Indias power consumption rose by 8.4% to 139 billion units in July 2023.

T9e peak power Demand in the country stood at 243.27 GW on November 30, 2023.

Indias electricity consumption grew nearly 80% kb about 847 billions units ( BU) on the first half of this fiscal year from April to September, showing an uptick in economic activities in the country.

India has an electricity-GDP elasticity ratio of 0.8. Thus, 7% growth in energy supply will be required if India is to grow at 8%. This shows that electricity will continue to remain a key input in Indias GDP growth. Its has been estimated that renewables will comprise 49% of Indias power generation by 2040.

In Budget 2023-24, US$ 1.02 billion (Rs. 8,300 (crore) central sector support for ISTS infrastructure for 19 GW renewable energy from Ladakh was announced.

Solar Park in india

India Tryst To Become a solar superpower: Resolution Unveiled

In alignment with global efforts to combat climate change, India, along with other international partners, has voluntarily declared its intention to achieve net-zero emission by 2070. india has been a key player in the global movement. Currently ranked 4th worldwide in solar power capacity, the solar power development curve in India has been nothing short of spectacular, with solar installed capabity now at 81.81 GW constituting 63.4%ofindiabotal renewable energy generation (Source: Invest India (https://www.investindia.gov. in/sector/renewable-energy)

Major FDI Investments In Renewable Energy Sector

This remarkable surge underscores the swift expansion of solar infrastructure across the nation, buoyed by proactive government initiatives and supportive policies aimed at fostering the widespread adoption of clean energy and achieving a renewable energy capacity of 500 GW by 2030.

6%).In Q1 2024, Jan-Mar 2024 was the largest module supplier, contributing around 19.5% share of total shipments in India, followed by Longi (12.1% share) and Trina (10.7% share).

India Roof top Solar Sector

.The India Rooftop Solar Market size in terms of installed base is expected to grow from 14.82 gigawatt in 2024 to 34.99 gigawatt by 2029, at a CAGR of 18.73% during the forecast period (2024-2029).

India expected to install 21.2 GW of solar in FY 2025

JMK Research projects 21.2 GW of new solar capacity addition in FY 2025. This will comprise 16.5 GW of utility-scale, 4 GW rooftop, and 700 MW off-grid installations.

In FY 2024, India installed about 11.5 GW of new utility- scale solar capacity, around 18% higher than previous fiscal year. There was a substantial installation of around 3 GW in the rooftop solar segment too, representing 34% growth year-on-year.

The nations cumulative renewable capacity installation reached 190.57 GW as of March 31, 2024. Solar is the major contributor with a 43% share in the total renewable mix, followed by wind and large hydro with a 24% share each. Around 108 GW of capacity across solar, wind, wind-solar hybrid and storage projects is in the pipeline. These projects are likely to be commissioned in the next 4-5 years. Another 69.2 GW of projects are under the bidding phase, i.e., where tenders have been issued but auctions are not yet completed.

Adani is the leading RE player with about 10.4 GW of cumulative operational capacity across utility-scale solar, wind and hybrid segments as of March 31, 2024. The developer has another 21.95 GW of RE projects under pipeline.

In Q1 2024 (January-March 2024), about 7.5 GW of utility-scale solar capacity was added in India. This is about five times the previous quarters installations.

Sun grow was the leading inverter supplier with a 50.7% share, followed by FIMER (18.7%) and Sineng (12.

EPC

The global Power EPC market was valued at USD 690 billion in 2023 and growing at a CAGR of 4.8% from 2024 to 2033. The market is expected to reach USD 1,103 billion by 2033. Rising demand for energy and power, Advancements in turbines, and other energy sources will potentially drive the growth of the Power EPC Market. Whereas a Rapidly growing global population and rapid urbanization may drive the growth of the Power EPC Market in the period forecasted.

https://www.thebrainyinsights.com/report/power-epc- market-14212

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

https://www.industryarc.com/Research/solar-pv-operations-and- maintenance-market-research-800358

Transmission

Indias solar power installed capacity was 81.813 GWAC as of 31 March 2024. India is the third largest producer of solar power globally.

The physical infrastructure of the grid and consolidating it into one of the largest synchronous grids globally. Looking ahead, as India aims to meet 50 per cent of its generation capacity from non-fossil fuel sources by 2030, and given the rising significance of electricity in the nations energy mix, substantial investments will be imperative in both the inter-state and intrastate transmission networks.

As of February 2024, the total transmission line length (at 220 kV and above levels) stands at 482,032 ckt. km, total alternating current (AC) substation capacity at 1,239 GVA and high-voltage direct current (HVDC) system substation capacity at 33,500 MW. Between 2016-17 and 2022-23, the line length has grown at a CAGR of 4.2 per cent, while AC and HVDC substation capacities have grown at 8 per cent and 9.4 per cent respectively. In absolute terms, about 103,490 ckt. km of lines, 425,587 MVA of AC substation capacity and 14,000 MW of HVDC substation capacity have been added during this period. The interregional transfer capacity has also grown considerably over the years, from approximately 75,050 MW in 2016-17 to 112,250 MW in 2022-23, recording a CAGR of 6.9 per cent. As of February 2024, the interregional transfer capacity in the country stands at 116,540 MW.

India Electric Two wheeler Industry

Projections indicate that the Indian EV market, valued at US$2 billion in 2023 could surge to US$7.09 billion by 2025. "the 2W segment demonstrated resilience and adaptability, with electric vehicle (EV) sales surging due to the expiration of the FAME 2 subsidy on March 31st. This led to a notable boost in the 2W-EV market share to 9.12%. Positive market sentiment was supported by seasonal events, improved vehicle supply, and financial incentives. Despite facing market volatility and intense competition, the industry is strategically evolving, particularly in the premium and EV categories, signalling a bright future.

Importance of Two-whe elers In

The Indian vehicle market is primarily dominated by the two-wheelers with more than 70% of the registered vehicles currently falling under this category. Thus, any effort to address the problems associated with the fossil fuels in the transport sector needs to have o major focus oa their use in these vehicles, shows the year-wise vehicle share data from 1951 onwards, indicating the continuous increasing share of two- whsofers.

High Speed Electric two-wheeler sales surge by 33.3% in 2023-24

Electric two-wheeler sales jumped by a whopping 33.3 per cent in 2023-24 YoY, data showed. As per the data on Vahan portal, 910,930 units of electric two wheelers (e2w) were sold in 2023-24, against 682,937 units in 2022-23.

FY 23-20242W OEM wise High Speed sales trend Niti Aayou Target VS actual & Sales Projection.

This data does not include Low Speed Sales

Sources: https://jmkresearch.com/wp-content/uploads/2024/05/ Annual-India-EV-Report-Card-FY2024-2.pdf

A low speed electric vehicle (LSV) is a four-wheeled vehicle with an attainable speed of more than 20 miles per hour but not more than 25 miles per hour (in China, not more than 70 kilometers per hour) on a paved surface, and it has a gross vehicle weight rating (GVWR) of less than 3,000 pounds. It cannot be powered by gas or diesel fuel.

The major players in global Low Speed Electric Vehicles market include Yogomo, Dojo, Shifeng, etc. The top 3 players occupy about 25% shares of the global market. China is main market, and occupies about 75% of the global market. Lithium-Ion Battery Low Speed Electric Vehicle is the main type, with a share about 45%. Personal Use is the main application, which holds a share about 45%.

Market Analysis and Insights: Global Low Speed Electric Vehicles Market In 2020, the global Low Speed Electric Vehicles market size was US$ 6567 million and it is expected to reach US$ 13350 million by the end of 2027, with a CAGR of 11.0% during 2021-2027.

Global Low Speed Electric Vehicles Scope and Market Size Low Speed Electric Vehicles market is segmented by region, by country, company, type, application and by sales channels. Players, stakeholders, and other participants in the global Low Speed Electric Vehicles market will be able to gain the upper hand as they use the report as a powerful resource. The segmental analysis focuses on sales, revenue and forecast by region, by country, company, type, application and by sales channels for the period 2016-2027.

Segment by Type, the Low Speed Electric Vehicles market is segmented into

Lithium-Ion Battery Low Speed Electric Vehicle

Lead-Acid Battery Low Speed Electric Vehicle

Sources:https://www.marketreportsworld.com/global-low-speed-electric- vehicles-market-18867585