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RENEWABLES

Renewable energy opportunities are immense in India as while it accounts approx 10% of capacity (16.7 GW against total installed capacity of 170 GW), but results in contributing only 3.5% of the energy generation pool in India. Further, legacy capacity additions were driven by tax shields, old technology, turnkey project approach– Equipment vendor driven and hence not a very competitive model. This offers a potential replacement market for new developers as competition intensifies.

Though India accounts more than 15% of Global population, it accounts for 5% of global emissions (1.5 t Co2 per capita against world average of 4.39 t Co2 per capita). Hence climate change concerns and Feed in tariffs are not the primary driver but energy deficit, a more stable business driver for renewable business in India.

Over the last 12 months, the Group has acquired 52 MW of Operating wind farms (Vestas and Suzlon make) and has setup another 18.9 MW (Suzlon) in southern India. This provided the required insight to the specifics of the wind business on ground to pursue the renewable business. The Group has pioneered the Captive Power Plant model in India, with bilateral PPAs (negotiated and non-regulated tariffs) directly with Industrial consumers and surplus sale to local utilities. This base of Industrial consumers itself form the immediate opportunity before more industries are signed up for PPA based off take.