Mytrah Energy Limited, a renewable energy company focussing on wind energy projects, says it could soon diversify into solar power generation, given the potential and also the complementary nature of the latter with wind projects. The company, listed on the London Stock Exchange’s AIM (formerly Alternative Investment Market), has thus far set up 543 MW of wind power capacity across six States in the country. It expects to inch closer to the one gigawatt capacity by early 2017, and is on course to complete $1 billion (about ₹6,200 crore) investment in the country.
Ravi Kailas, Chairman of Mytrah Energy Limited, explained that the company, which has thus far set up a wind power generation capacity of about 543 MW in three years of operation in India, will add about 300 MW by next year’s wind season as funds have already been arranged for projects up to 1,000 MW.
In an exclusive interaction with
Within three full years of operation, we have managed to develop 543 MW of wind-power assets with 10 projects spread across six States. Many of them are utility scale and running very successfully. We have managed to innovate in a number of areas, including the way we have implemented these projects, spending resources up front to set up over 170 masts. We are an integrated wind power company, doing everything right from planning, land acquisition, development to EPC works, except sourcing the turbines. Hitherto, most wind farms were either 2-3 MW, but the scale and size is now utility scale.
Are you looking at diversifying into the solar energy sector?
With a successful model to develop wind energy assets, we see solar energy could well be a complementary business for us. There is land, we have technical knowhow, and the country needs solar power. We believe wind power is still cheaper when compared to solar power generation. But there are indications that even solar would be closer to grid parity and may not need any subsidies down the line. There are a lot of similarities in wind and solar power units. With existing evacuation lines, which could be used for solar from wind farms, it does make a good fit to take to solar power.
Are you looking at acquisition of assets?
Yes we are. But they need to be good assets. Given the opportunity to set up plants which are lot more efficient now then ever before, it makes sense to set up our own units rather than seeking to buy out assets. On our own without any acquisitions, we are heading towards becoming a 1 GW wind energy company and have capacity to take it up to 3,500 MW. Funds for 1 GW have already been tied up and a number of projects are at advanced stages of planning and closer to implementation based on funding arrangements.
Is Mytrah looking at an Indian IPO?
There are no immediate plans to list as we have adequate funding arrangements to take us through and have a good ongoing relationship with investors and bankers, who have been continuing to extend funds required to meet our expansion needs. While there are various reasons for companies to go public, we are under no pressure to consider this option. The company’s cash flows and financial closure already made for projects will see us past the 1 GW mark.
What is the likely capacity addition in the country?
The country has a capacity of 22 GW of wind energy and it is adding about 3 GW per annum. Last year saw the addition of 2.2 GW. But the potential is huge. The Government is also committed to increase capacity and has set targets for both wind and solar power units. The solar sector may be at a low base now, but within a short time, could see big capacity addition. And, possibly, it could get bigger than some of the countries in Europe, which have created big capacity as a drive towards renewable energy. If the 19{+t}{+h} century was in the quest for coal and the 20{+t}{+h} century for oil, the 21st century will be for renewable energy.