As wind IPPs begin to take shape in India, Renew Wind Power, MD, Mr. Sumant Sinha talks about hs company's future plans in an exclusive interview with Renewable Markets India.

 

Q: What have been the latest developments at your organization?

A: The recent investment by Goldman Sachs is indicative of their conviction not only in ReNew’s management team but also the potential of the renewable energy sector in India. The various incentives offered by the Government of India, encouraging investment in the industry, has helped position this very critical sector.

From ReNew’s perspective too, it is a highly positive development. We have managed to complete this fundraise in a difficult economic environment and we now have a sizable amount of capital to selectively pick the most attractive projects around the country as well as independently develop our own wind farms.

Q: What are the long term and short term goals you are targeting?

A: Initially, our focus will be only on wind energy and on carefully building out this capacity. We aim to reach 1 GW of wind power capacity by 2015, which would mean annual additions of 200 – 300 MW. We will explore other renewable energy sources once we have a sizable wind portfolio.

But let me add that we are a quality driven organization. So our incremental capacity addition will significantly depend on the returns we generate each year on new projects. Hence an attractive renewable energy regime both domestically and internationally will be fundamental to our expansion plans going forward.

 

Q: What is your opinion on the current status of policy framework for wind IPPs in the country?

A: The CDM Mechanism, Feed-in-tariffs, Generation Based Incentives and Renewable Energy Credits will play a vital role in incentivising Independent Power Producers across all renewable sectors. Certified Emission Reductions (CERs) are very beneficial to projects with lower returns, often making them viable. GBI increases our net returns from the projects regardless, and the REC mechanism allows for more options to optimize our offtake strategies.

Q: As an IPP, what are the major challenges you face?

A: Currently, our main challenge is finding the right projects and creating an optimal portfolio of renewable assets.

Q: In the background of tough economic conditions globally, how does India fare as a wind energy investment destination?

A: Regardless of the global economic conditions, the fact remains that India has a large electricity market, with peak shortages of ~14% and per capita usage only 1/4^th the global average. Policy and regulation is also proving to be very supportive to the industry and private investors in this space have been really active so far this year.

Q: Lastly, what are your views as an IPP on the competitiveness of Indian wind turbine manufacturers competitive as compared to global players?

A: The success of Suzlon over the years is a good example of the growing competitiveness of Indian wind turbine manufacturers. On the technology side, however, there is a slight gap especially when it comes to larger turbines and offshore technology.