Below are the excerpts of our recent interview with Mr. Kalyan C. Korimerla, CEO, NSL Renewable Power Pvt. Ltd.
Let’s begin with a glimpse of your company’s presence and offerings in India?
We are a renewable energy company with a portfolio of approximately 310 Megawatts of commissioned capacity in Wind, Solar and Hydro across the country in Tamil Nadu, Karnataka, Maharashtra, and Himachal Pradesh. In addition, we have approximately a Giga watt of assets in development and in pipeline across the country.
Tell us a bit about the recent technology advancements in your sector?
There have been many technological advancements in our sector. On the Wind side, bigger machines with higher hub heights are coming into the market. We are also seeing lot of improvements in Solar panel efficiency, their generation capacity and cost. Cost and capacity of storage solutions are becoming attractive now. In addition, there are Wind-Solar hybrid solutions coming into the market and GE showcased a Wind and Hydro hybrid solution in Germany. I hope that these advancements come into India as well in the near future. I think will be technology based innovations that will drive the growth of this market in the future.
What are your growth plans for the Indian Market and what are the milestones you wish to achieve in the renewable sector?
We are pretty much focused in India and we have a huge pipeline. Right now we are focused on stabilizing some of our commissioned assets in our installed base of 310 Megawatts. Once our assets stabilize, we will be deploying more capital into developing our pipeline in States such as Gujarat, Maharashtra, Tamil Nadu, Karnataka, Andhra Pradesh. We have enough on our plate to keep us busy for the next 5-7 years.
What are your views on financing Renewable energy products in India?
Financing of renewable energy in India has been done in couple of traditional ways. Most common way is to secure project financing in the form of equity from the Investors and debt from a lender who takes a risk alongside the equity investors in developing the project. Some investors have funded projects with 100% equity as well. However, once these projects are commissioned, the capital structure is refinanced with cheaper and structured debt so that the returns to equity investors are enhanced. But I think going forward you will see lot more financial products coming into the play. You will see more and more renewable energy players offering bonds on stabilized assets and pursue InvIT listing route as well. Once there is more clarity around Infrastructure Investment Trust product (InvIT), which has been championed by the government, you will see a lot of platforms pursue this listing so that they can actually unlock some of the capital that has been deployed into these assets, and then re-deploy this capital into future projects. Some platforms which have scaled up nicely will pursue IPO listing as well. In short we are still in a very nascent stage, current players are still pursuing traditional capital structures to fund development of assets but I think in the future you will see a lot of innovative products coming into the market.