Gandhinagar: In its shapath patra (commitment letter), state-run SJVN Limited pledged at RE-Invest 2024 to add 15 GW of Renewable Energy (RE) projects by 2030. However, it is planning to add 23 GW of green power, including RE and hydropower and Pumped Storage Projects (PSPs) by 2030, said SJVN’s Director (Finance) Akhilesh Singh. In an interview with PSU Watch on the sidelines of RE-Invest 2024, Singh said that in order to fund this ambitious expansion of green power, SJVN will be looking to launch an Initial Public Offer (IPO) of its green subsidiary, SJVN Green Energy Limited (SGEL), before the end of the current financial year. Going forward, SJVN will also be participating in bids for Round-the-Clock (RTC) power and will be looking to use its huge hydropower capacity for blending with renewable energy.
Here are excerpts:
SJVN has pledged 15 GW of RE capacity at RE-Invest 2024. How much will you be adding every year? What is the capex plan for this expansion?
For the RE capacity addition, the capex will be Rs 90,000 crore. However, I must mention that we have plans to add 23 GW of green power, including hydropower and PSPs, by 2030. Out of 23 GW, 16 GW will be other than hydro, like solar, wind, battery energy storage and hybrid power. And 7 GW will be hydropower and Pumped Storage Projects (PSPs). If I break this down further, 3 GW will be PSPs and 4 GW will be hydropower.
The 16 GW capacity addition will entail capex of Rs 90,000 crore and 7 GW of hydro and PSPs will have capex of Rs 70,000 crore.
What are the kind of projects that you will be looking to add in the renewable segment?
Nowadays, after the advent of solar and wind, there is great demand for RTC (Round-the-Clock) for meeting peak demand. Therefore, we are floating a lot of tenders for RTC power under REIA (Renewable Energy Implementing Agency). Under REIA, we have been given a target of floating tenders for the capacity of 10 GW each year. And out of 10 GW, almost 4.5 GW will be RTC. And 3 GW in hybrid mode and balance in wind and solar.
And we are also planning to develop RE projects. We have not participated in any RTC tender so far. But we are also planning to bid for RTC tenders in the future. Plus, we are trying to have blending of hydropower with solar to have RTC. And that will be a very good combination. Even for PSPs, we will use our own solar energy for pumped storage to have RTC power. These projects will put SJVN in a position of advantage.
What are the other interesting discussions that SJVN has been part of here at RE-Invest 2024?
We have signed some MoUs with Greenko. And we are planning some MoU with ACME as well. It is under discussion, in the final stage. They will be going for Green Hydrogen and we will be providing green electricity.
What are SJVN’s plans on Green Hydrogen?
We have a Green Hydrogen pilot project at Nathpa Jhakri. But we are planning to have more Green Hydrogen projects on commercial basis.
Is there a certain capacity that you are planning to add within a certain timeframe?
This technology is yet to be developed, so, I am not giving you a definite programme. But certainly, with the passage of time, we will be doing almost 500 MW per month by 2030.
What are the things that SJVN is looking forward to this year?
This year we have planned capex of Rs 12,000 crore. Today, if you talk about RE, we have 490 MW operational capacity. And we will be adding 1 GW more by this year-end. Going forward, every year, we will be adding almost 1.5-2 GW.
What are the avenues that you are planning to tap into for bringing these funds?
We are planning to have an IPO of SJVN Green Energy. And we will be attracting investors in our Arun-III hydropower project or any other upcoming hydropower project. Because our green subsidiary, SJVN Green Energy Limited, is already an SPV (Special Purpose Vehicle), owned 100 percent by SJVN. So, we will pare our stake upto 75 percent or even up to 51 percent. We will sell the offtake and we will be arranging funds. Plus other green funds, etc.
This year we will be offloading almost 20 percent stake in SJVN Green Energy. But gradually, depending upon the demand, we will take a decision on whether we want to offload our stake further. And our revenue will also increase once our projects start coming up. In hydro, the cost and time required for completion is higher. But in the RE segment, we will be commissioning projects every 1.5 to 2 years or 2.5 years. Every year, our revenue will also increase.
Plus under REIA as well, we have signed PPA (Power Purchase Agreement) for almost 6 GW. And that will also increase our revenue. But the margin will be lesser because 7 percent will be given. That will be used as capex or equity. But we will be meeting our funding requirements.
When can we expect the IPO? What will be the issue size?
We are planning the IPO by this financial year-end only. By the end of FY25. We will be offloading about 20 percent. So, Rs 1,000 crores will be the par value. With multiplication, we will be expecting Rs 3,000 to 4,000 crores.
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