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>Vibrant Energy is determined to deliver green energy solutions to the Corporate & Industrial (C&I) sector through the open access route.
>Vibrant Energy is actively developing several wind-solar hybrid projects that can deliver inter-state renewable energy through Vibrant Energy’s ISTS wind and solar parks.
>The C&I sector will spearhead the much-needed change of making the energy markets real-time and delivering round-the-clock renewables.
Please tell us how Vibrant Energy’s journey has been since its inception.
Vibrant Energy was founded in 2016. Since its inception, Vibrant is determined to deliver green energy solutions to the Corporate & Industrial (C&I) sector through the open access route. Over the years Vibrant Energy has been delivering consistent savings and sustainable energy to marquee clients in the FMCG, Pharmaceutical, and Manufacturing sectors.
Vibrant Energy, a portfolio company of Macquarie GIG operates on a standalone basis with 132MW of operational capacity in the states of Andhra Pradesh, Telangana, and Maharashtra. Vibrant has a total has 915MW of Assets Under Management (Operational + Under-construction + Commitments) and over 2GW of pipeline empowering C&I consumers to meet their 100% renewables commitment and sustainability goals. Vibrant Energy has significant development in the areas of wind-solar hybrids and round-the-clock renewables.
While delivering on this growth of the C&I sector, Vibrant Energy adheres to the best institutional standards of corporate governance, WHSE, social responsibility, and transparency in every project we undertake.
What has been the funding received so far? How has the business grown?
As a portfolio company of Macquarie GIG, Vibrant Energy is well-funded to deliver its commitments and has a business plan to be one of the leading C&I-focused India platforms with more than 2GW of projects in 2-3 years. In terms of operations, Vibrant Energy provides wind, solar or wind-solar hybrid energy to corporate clients in 9 key states namely Maharashtra, Karnataka, Madhya Pradesh, Uttar Pradesh, Rajasthan, Gujarat, Tamil Nadu, Andhra Pradesh, and Telangana. Apart from the intra-state open access, Vibrant Energy is actively developing several wind-solar hybrid projects that can deliver inter-state renewable energy through Vibrant Energy’s ISTS wind and solar parks.
Could you brief us about the Group Captive model solution that you provide and its benefits?
Group Captive power is a business model where consumers make increased economic savings by investing at least 26% equity in the project SPV. Vibrant Energy has an active portfolio of operating assets structured under the Group Captive Model. This is the most cost-effective model because Vibrant Energy takes responsibility for all the capital costs and delivers power on an opex basis. The actual infusion of 26% equity investment ensures that the customer qualifies as a group captive consumer and hence can benefit from the cross-subsidy surcharge exemption. Additionally, Vibrant Energy is heavily focused on the customer and hence it provides an active support team that helps the customer meets all regulatory permits like ABT meters, etc.
What has been the behavioral change toward solar panel installation observed in the past 5 years?
The renewable energy sector in India saw a huge headstart after 2014 due to the aggressive tenders we witnessed from SECI for utility bids and liberation of the open access with initiatives from the states of Andhra Pradesh, Telangana, and Karnataka. Over the last five years, while we are registering decent growth in the utility and C&I markets, the total annual capacity additional far lower than the required 30-50GW per year to achieve the 2030 target of 500GW. India has marked its leadership in being one of the most attractive sustainability markets in the world by committing a reduction of 1bn MT of GHG emissions by 2030 which requires 50% of India’s energy needs to be met by renewables.
Over the last couple of months, we are witnessing significant reforms introduced to expand the market from a traditional reverse auction utility tender market to more of a market-based global approach. The new reform announcements encouraging ISTS renewables, opening green open access, and expanding the green hydrogen market are some key notable ones. These are good beginnings but we need a collective and collaborative effort from the central government, central and state regulatory commissions, transmission operators, discoms, and industry participants to achieve the joint vision of 500GW by 2030.
What do you think is the future of the round-the-clock energy solution in India?
We are witnessing a tectonic shift in the way the C&I sector is looking to consume 100% renewable energy and expect the C&I open access sector to be over 10GW annually. On a per capita basis, India is still much lower than China and its Western counterparts. If we are going to achieve the $5 trillion dream and 50% renewables by 2030, we are going to witness new energy needs only being met by round-the-clock renewables. The C&I sector will spearhead the much-needed change of making the energy markets real-time and delivering round-the-clock renewables. Added to this the C&I sector is not only gearing to consume 100% renewable energy but also consuming a high percentage of sustainable fuels like green hydrogen and green ammonia.