New Delhi-based Hero Future Energies which is betting big on renewable energy by commissioning 300 MW capacity each in solar and wind power across the country, is keen on the opportunities in Telangana. The company is in advanced stages of commissioning its 32 MW wind power project in Zaheerabad with an investment of Rs 210 crore while it will commission its 43 MW solar power project in Siddipet next month, where it is investing Rs 250 crore. Sunil Jain, CEO and ED, Hero Future Energies told Telangana Today, “We are making a cumulative investment of Rs 460 crore in Telangana. We could be looking at more projects in near future. We are yet to sign the power purchase agreement for our wind project. We will be keen to participate in the next solar bidding too.”
Explaining the renewable mix suitability for Telangana, he said, “Hybrid power (solar-wind mix) can be a boon to the State. While solar will be generating capacity during the day, wind power can contribute during the evening, looking at the region.”
National plans and scenario
Hero is planning to have a capacity to generate 1 GW (with an investment of Rs 6,000 crore) by August this year, 1,500 MW by March 2018 and scaling it up to 2,500 MW by 2021. The company has executed 200 MW of rooftop solar capacity so far and will add another 60 MW this year while 35 MW is in pipeline across the country. Jain said, “Renewable energy is self-sustainable. The sector has reached a stage now where the companies can remain self-reliant even without government subsidies. The only challenge is that the power demand is less and there is over supply.”
On the dipping solar tariffs, he said, “Tariffs have fallen as low as Rs 3.15 per unit now. There is a possibility of further dip in future as biddings are getting more competitive nationally. New benchmarks will be created. Financial costs are falling significantly. Tariffs may be stabilised around Rs 2.70-2.90.”
While the power demand is met, the new challenge is addressing the transmission infrastructure in the country. Transmission losses and power theft continue to pose challenges.
Green corridor project being implemented by Power Grid Corporation may bring in some improvement in the transmission scenario. The project is expected to be executed by 2020 with an investment of Rs 20,000 crore.
The company which is not currently executing projects overseas is exploring opportunities outside the country particularly in South East Asia and Africa. Modalities whether the company will execute projects individually or through partnership is to be worked out, Jain said.