— P. Krishnakumar, Managing Director,
Orient Green Power Company Ltd
Orient Green Power Company is amongst India's largest renewable
energy producers with an aggregate capacity of 300 mw comprising
wind energy and biomass-based power. The Chennai-based
company is now expanding its footprint through small hydropower
projects. In an exclusive interaction,
P. Krishnakumar speaks about
the company business and shares his future plans. Krishnakumar
also gives insights into how the government, through key policy
changes, could make renewable energy an even more attractive
proposition. An interview by
Venugopal Pillai.
To begin with, please tell us about the broad distribution of your
existing renewable energy capacity in terms of source type and
geographical location.
Orient Green Power Company has a total renewable energy
capacity of around 350 mw, which includes 300 mw of wind and
50 mw of biomass. Our wind power business is concentrated in
Tamil Nadu where we have an installed capacity of 275 mw,
followed by 25 mw in Andhra Pradesh. Our biomass plants are
spread over Tamil Nadu and Rajasthan.
Do you have plans to set up wind power capacity in states like
Maharashtra, Karnataka, Gujarat, etc where large wind power
potential exists but unexploited?
Yes, we have planned nearly 300-mw of wind power plants in
states like Andhra Pradesh, Gujarat and Karnataka, apart from
Tamil Nadu.
Please discuss your imminent plans of entering the small
hydropower generation sphere.
OGPL is currently establishing small hydropower plants of capacity
3x5 mw in Orissa, located across the Kolab River, near Jaypore.
The plants are coming up through a special purpose vehicle
partnered by Hyderabad-based Pallavi Power & Mines Pvt Ltd.
OGPL has also identified some potential small hydropower
projects for 5x5-mw, in Himachal Pradesh and pursuing
possible partnership with Japan's Kyustu Electric Power
Company. The sites have been identified and pre-feasibility
studies have been conducted.
Solar power is fast emerging thanks to lucrative feed-in tariffs
envisaged under the National Solar Mission. Do you have any
plans of including solar energy in your renewables portfolio?
We do have plans to include solar energy in our renewable
portfolio. We are already participating in the National Solar
Mission (JNNSM), bidding for possible projects aggregating 5 mw.
Secondly, in Rajasthan, where we have a large presence with
biomass power projects aggregating 50 mw in operation and
under implementation, we have envisaged to set up hybrid-solar
projects with a backup of biomass power generation.
Re-powering of existing wind farms with higher-rating turbines
could add to capacity without increasing the geographical
footprint. What is your view?
Yes, re-powering is good productive concept. We are planning
to undertake micro-analysis at our existing sites.
Wind energy has been the backbone of India's renewable
energy pursuits. What would you recommend as key policy
changes to further private investment in wind power?
Yes. Renewable Energy Certificates (REC) should be made
tradable at a higher frequency, preferably every fortnight.
Secondly, Renewable Purchase Obligation (RPO) for every
power utility should be enforced. Also, the Generation Based
Incentive (GBI) for wind power projects should be increased and
should be made at par with accelerated depreciation benefits.
Please tell us about your projects overseas.
OGPL already has an overseas presence in wind energy. As our
first overseas venture in the field of biomass power, we have
already begun implementation of a 10-mw plant at Hambantota
in Sri Lanka. The primary fuel—Glyceridia Sepium—would be
grown through captive energy plantation near the project site.
All clearances are in place and the project is set for
commissioning by June 2013.
OGPL also has plans to have the presence in Indonesia and
possible ventures are being explored.
What are the key challenges faced in biomass-based power
generation?
OGPL's biomass-based power projects are being operated with
various kinds of fuels. The fuel mix depends on the seasonal
availability of the crops and the residues. Hence the biggest
challenge is the fuel sourcing and also the quality of fuel.
Because of the alternate uses of biomass, soaring prices of fuel
is becoming a big concern for operating the plants.
Similarly the unviable tariff offered to the biomass power
plants from the state electricity boards is forcing the units to opt
for the open access, which gives the additional benefits of
availing the Renewable Energy Certificates under Renewable
Purchase Obligations. Another big concern is the delayed
payment from respective discoms.
What is the latest on your poultry litter-based power project
coming up in Tamil Nadu with Japanese collaboration?
Project activities have started in the own land and machinery
ordering is going on. The commercial date of operation is set
during December 2012. Our parent company Shriram EPC is
doing the engineering, procurement and construction of the
poultry litter based power project with the capacity of 7.5 mw.
Do you feel that the recent creation of RECs and their trading will
further boost renewable energy capacity creation in India?
Yes. Owing to the unviable tariff, RECs will certainly boost the
renewable energy capacity creation in India. However, the
enforcement of RPO has to be geared up further since the
awareness has not penetrated as expected, within the
industries or with the consumers.
What new policy measures could MNRE adopt to accelerate the
development of renewables in India?
Current policies of MNRE, though reviewed periodically, need
to be more supportive by way of increased subsidy, due to the
technological challenges being faced by the renewable
energy sector.