Steel Authority of India Ltd (SAIL) is exploring options to float joint ventures with ‘green' power producers to meet its renewable energy commitment.

SAIL, one of the largest captive power producers, not only proposes to buy green power from renewable producers, but is also open for joint ventures for producing green energy, sources said.

SAIL produces about 600 MW yearly through its conventional captive units. As part of their renewable purchase obligation (RPO), the State utilities and captive producers are expected to source about five per cent of their requirement from green sources.

Such commitment, as specified by the respective State energy regulatory bodies, would increase one per cent yearly till it reaches 10 per cent.

At current level, SAIL would have to source almost 30 MW a year from renewables and this would increase to up to 60 MW over next five years.

“Since our requirement is substantial, we are open to form joint ventures with companies in wind, solar, bio-mass and even small hydro projects,” sources said. The company has invited expression of interest from both domestic and global green power producing firms and expects to firm up its plans by the year-end.

Other PSUs

SAIL would be joining other public sector entities such as ONGC, BHEL, GAIL, Indian Oil Corporation and NTPC which are already in the fray to set their own green power capacities.

As a part of National Action Plan on Climate Change the Government is targeting 20,000 MW of solar power by 2022 and 2,000 MW equivalent off-grid solar applications.

According to data available renewable energy including wind and hydro has contributed 35 per cent to total capacity of 49,341 MW added in past five years. Of this, wind accounted for 17.8 per cent and hydro 10.6 per cent, while other alternate sources including bio-mass accounted for 7 per cent of the capacity added.

Related Topics
comment COMMENT NOW