Nithin’s Portfolio

Power Value Chain, short summary :

Industry Scenario :

Total target for 2030 :500 GW renewable energy installation
Installed Capacity as of July 2023 : 179.322 GW Renewable energy, large hydropower
Remaining Capacity to be completed by 2030 : 320.678 GW

The following is the installed capacity for Renewables:

• Wind power: 42.8 GW

• Solar Power: 67.07 GW

• Biomass/Co-generation: 10.2 GW

• Small Hydro Power: 4.94 GW

• Waste To Energy: 0.55 GW

• Large Hydro: 46.85 GW

• Aims to produce five million tones of green hydrogen by 2030.

• Aims to achieve 125 GW of renewable energy capacity.
  * 57 solar parks with an aggregate capacity of 39.28 GW have been approved in India.
  * Wind Energy has an off-shore target of 30 GW by 2030, with potential sites identified.

• India has set a target to reduce the carbon intensity of the nation’s economy by less than 45% by the end of the decade

• Achieve 50 percent cumulative electric power installed by 2030 from renewables,

• Achieve net-zero carbon emissions by 2070.

Following list of activities in renewable energy will be considered for trading carbon credits under bilateral/ cooperative approaches under Article 6.2 mechanism as assigned under the National Designated Authority for the Implementation of the Paris Agreement (NDAIAPA):

1. Renewable energy with storage (only stored component)
2. Solar thermal power
3. Off-shore wind
4. Green Hydrogen
5. Tidal energy, Ocean Thermal Energy, Ocean Salt Gradient Energy, Ocean Wave Energy and Ocean Current Energy
6. High Voltage Direct Current Transmission in conjunction with the renewable energy projects
7. Green Ammonia

Union Budget 2023 Highlights

Green Growth identified is one of the nodes in the SAPTARISHI (7 priorities).

• $2.4 Bn National Hydrogen Mission for production of 5 MMT by 2030, $36 Mn additional in Budget.
• 4 GWh Battery Energy Storage Systems supported through Viability Gap Funding
• Pumped Storage Projects has received a push with a detailed framework to be formulated.
• $1.02/2.5 Bn Central Sector Support for ISTS infrastructure for 13 GW Renewable Energy from Ladakh

Credits : Renewable Energy in India: Investment Opportunities in the Pow….

Power Finance :
For anything and everything you need Finance :
(Supervisor)
PFC
REC

PFC/REC provides financial assistance to entire power sector value chain across India. This includes financing to state and private utilities in generation, transmission, distribution space including financing the associated forward and backward linkages.

Power Generation : These companies have MOU with PFC/REC for considering loan, now the power generation companies setup the plants or they source out contract to EPC companies to setup the plant for them.

Power Generation companies are set of companies who is responsible for carrying out projects to achieve the 500GW installed by 2030 and to be operational.
I don’t fully expect these companies to have a robust balance sheet by EOY however this will be for 2030 as these companies needs to generate cash and cash can be generated when there is power generation
(Supervisor)

• NTPC : NTPC (National Thermal Power Corporation) : NTPC is one of India’s largest power generation companies, primarily engaged in the generation of electricity through coal, gas, and renewable sources.
• NHPC : NHPC (National Hydroelectric Power Corporation) : NHPC is a public sector undertaking engaged in the development of hydropower projects in India.
• SJVN
• BHEL : Bharat Heavy Electricals Limited (BHEL) : BHEL is a leading engineering company in India involved in the design, manufacture, and maintenance of power generation equipment such as boilers, turbines, and generators.

Power Transmission These are the set of companies that outline the transmission towers to carry electricity from rural villages to urban areas.
The estimated cost of the power transmission project is around Rs 27,000 crore
These need to start their work from current or next year to layout HVDC for miles.

• POWERGRID (Supervisor) : Power Grid Corporation of India Limited (POWERGRID) : POWERGRID is a central transmission utility responsible for the development and operation of the power transmission network in India.

Power Distribution
PTC

Some of the EPC private companies :

Image Credits : Emerging trends in the power value chain –