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Three major conglomerates – JSW, Adani and Tata – have evinced interest in meeting the green energy requirements in the commercial and industrial (C&I) segment, top company executives said.
Change in the name and branding, extending finance options, building channel partners and establishing local presence in potential states, are some of the measures undertaken to tap into this segment, they said.
“We are actively scouting for opportunities to enhance the size of the C&I segment in various states across the country,” said Pritesh Vinay, director -- finance of JSW Energy.
Of the company’s total 10 gigawatt (GW) portfolio, a modest 100 MW caters to C&I, excluding the supply to group companies. JSW Energy is hopeful to change this with focused measures.
“JSW Energy has initiated dialogues with prospective third-party C&I consumers, including the micro, small and medium enterprises (MSME) segment, to offer green energy solutions on a short-term and long-term basis,” Vinay said.
The company, he added, also plans to have a local presence in potential states along with a network of channel partners to engage with C&I consumers.
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Tata Power, which enjoys an early mover advantage, has already made major in-roads in this segment.
In the last few months, the power producer has announced a slew of new wins including a 4.4 MW Group Captive Solar Plant in collaboration with ANAND Group, partnering with Sanyo Special Steel Manufacturing India Pvt. Ltd (SSMI) to set up a 28.125 MW Captive Solar plant and executing a Power Development Agreement (PDA) for a 26 MW Group Captive Solar Plant with Neosym Industry Limited.
“Our strategic partnerships with industry leaders have significantly expanded our reach and enriched our ability to provide reliable, cost-effective power solutions,” said Praveer Sinha, chief executive officer (CEO) and managing director (MD) of Tata Power.
Tata Power aims to grow its C&I portfolio by adding 5,710 MW annually by 2027, a target indicated by company executives.
Sinha says the company intends to expand its footprints in states such as Maharashtra, Tamil Nadu, Karnataka, Madhya Pradesh and Odisha.
“We aspire to become the market leader under the C&I segment open access portfolio,” said Sinha.
Sabyasachi Majumdar, Senior Vice President and Group Head of Corporate Ratings at Icra lists several major drivers that make C&I sales an attractive proposition for RE developers. "Firstly, they offer better returns. While C&I projects are somewhat smaller than large grid based projects and may suffer from somewhat higher capital costs, even after adjusting for the same, the returns are better," Majumdar said.
The C&I segment accounts for about 40-45 per cent share in all India energy demands.
“Even assuming that one-fifth of the energy requirements of the C&I segment is to be met through renewables, the renewable energy capacity requirement in the country to cater to this segment is estimated to be close to 80 GW,” Vinay explained.
Adani Energy Solutions, erstwhile Adani Transmission, is yet another company aiming for a share of this C&I pie.
The company in its annual report said the emphasis on the word ‘solutions' was to appeal to the business-to-consumer (B2C) segment, beyond meeting transmission the needs of government power utilities, thus gaining a '' larger skin in the game'.
In response to a query on the company’s targets for the C&I segment, Adani Energy Solutions said, this business opportunity will certainly be part of the company’s healthy growth profile.
The Adani group firm plans to pursue clients in select industries, which the company said, are “sensitive to reliable, steady state supply for long tenure.”
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