Below Are The Excerpts Of Our Recent Interview With Mr. Vikram Kailas, Md & Ceo,Mytrah Energy (India) Pvt. Limited
What is current installed capacity of Mytrah Energy and how has been your journey so far?
Over the last six years, Mytrah Energy has emerged as one of India’s leading renewable energy IPPs. The company currently has a total renewable energy (wind and solar) portfolio of 3000MWof operational and under development projects. During this period, Mytrah Energy has built industry leading capabilities acrosswind-resource monitoring and assessment, environmental and social management systems (“ESMS”), project and equity financing, land acquisition, project construction,and asset management.
Do you think India would be able to reach the target of 60 gigawatts (GW) of wind energy capacity by 2022 especially given the stiff competition the segment faces from Solar energy & withdrawal of certain tax benefits for the wind segment?
When discussing the 60GW target, one needs to consider things from the perspective of pricing, demand and other industry trends that favour wind. Wind power prices have declined steadily over the years making it one of the most economical power sources. Add to this the unmet renewable purchase obligation (“RPO”) of 40GW and the likely supply vacuum from retiring old, polluting thermal assets that don’t meet SOx norms, and it becomes abundantly clear that the stage is set for wind and solar power demand to remain very robust.
In 2016-17, India added 5.4GW of capacity in wind powerand 5.5 GW in solar power. The first ever auction for interstate wind energy power projects was concluded in February 2017. Mytrah Energy was one of the winning bidders in the 1000MW auction. The firm won the right to build a 250MW wind power project in Tamil Nadu to supply power to PTC India under a25 year PPA. The draft guidelines for intrastate bidding for wind projects have also been issued by MNRE and are open for comments till April 21, 2017.
Reduction in accelerated depreciation (“AD”) benefits, withdrawal of generation based incentives (“GBI”) from April 2017 and the reluctance on the part of DISCOMs to sign projects on FIT mode may lead to a temporary slowdown in wind. However, the positive trends are here to stay. Bidding will gain acceptance as the new norm and the industry will see action picking up soon, possibly from the 2nd half of this financial year. While the 60 GW target for wind power is a challenging one, with the continued support of the Centre and the states, we could see 15 GW of capacity being bid out on a y-o-y basis. That should see us getting to the 60GW target in good time!
What are your views on repowering policies? Do you think they could be game changer for the wind segment?
The policy for repowering of wind energy projects issued last year is expected to enhance the wind energy generation from wind turbines installed before 2000, most of which have a rated capacity of 1 MW or less. The major areasof concern for repowering projectsare obtaining evacuation approval and the uncertainty around finding off takers for the additional capacity. In case of Mytrah Energy, most wind turbines in our portfolio have a rated capacity of more than 1.5 MW, so this policy won’t have a direct impact on our operational portfolio.
What will be the impact of Reverse bidding on the wind energy sector?
The level of participation in the wind auctions point to the coming of age of the wind industry which commenced its journey in 1990s. The first round of auctionswas very competitive and led to tighter pricing than could have been foreseen even a few months earlier. This speaks to the growing confidence of the Indian renewable power developers in their ability to deliver projects on terms that are globally competitive. Ultimately, this will pave the way for the secular growth of the Indian renewable energy sector.
What is your current order book position and what are the projects that you are currently bidding for?
Since we are a developer and not a contractor, the order book is not a relevant metric for us.
Mr. VikraM kailas, MD & CEO,
Mytrah EnErgy (inDia) PVt. liMitED