### Adani Scandal Highlights Hurdles in India's Renewable Energy Efforts

Recent bribery allegations against Gautam Adani, founder of India's Adani Group, have unveiled significant challenges faced by the nation in its pursuit of renewable energy. As India aims to transition from coal-fired power to solar and wind energy, state government-owned power distribution companies are reportedly slow to commit to purchasing renewable energy.

According to U.S. authorities, Adani allegedly orchestrated a $265 million bribery scheme to acquire solar power supply deals with Indian state officials. This effort followed years of his company's struggles to secure buyers for a $6 billion solar project—a claim Adani Group has firmly denied.

India, which is the third-largest emitter of greenhouse gases, generated 75% of its power from coal and only about 12% from renewables excluding hydroelectricity in the year ending March 2022. The country missed its target to add 175 gigawatts (GW) of renewable power by 2022 by over 10%, prompting federal efforts to increase the renewable capacity to 500 GW by 2030.

The delay in power purchase agreements (PPAs) is not unique to Adani Green, India's largest renewable energy firm. The company faced extended delays to finalize supply deals for 8 GW of solar capacity won in a national tender. Delays are further exacerbated by the withdrawal of state-guaranteed PPAs by the Solar Energy Corp of India (SECI), which left 30 GW of completed projects without buyers.

In an effort to push states toward achieving national renewable energy goals, New Delhi introduced renewable purchase obligations (RPOs) in 2022. These mandates require states to significantly increase their green power consumption, doubling the national share to 43.3% by March 2030. However, a report by government think-tank NITI Aayog highlighted that 20 out of 30 observed provinces need to double their green power share to meet these requirements.

R Srikanth, an energy industry adviser at India's National Institute of Advanced Studies, emphasized that setting ambitious targets is pointless without sufficient interest from power distribution companies. The scandal surrounding Adani may also deter foreign investors, making cost-effective financing harder to obtain.

Addressing the procurement issues, SECI's chairman suggested the need to create a "demand pool" and improve state awareness of renewable benefits. On average, it now takes 8-10 months to finalize power supply deals post-award, compared to just three months for contracts awarded between July 2018 and December 2020.

JM Financial, a brokerage firm, pointed out that project delays stem from the sudden increase in renewable bids, pipeline mismatches, and obstacles in timely project execution. Cancellations also pose a challenge, with about 4%-5% of tendered projects being annulled. The development of transmission infrastructure lags behind as well.

To address these delays, Rakesh Nath, former chairman of India's Central Electricity Authority, recommended determining buyer demand prior to inviting project bids. This proactive approach may help minimize the time required to sign power supply agreements and ensure smoother transitions to renewable energy.