In a first of its kind of initiative, leading corporate entities have come together and aggregated their demand for green energy. A consortium comprising nine companies across sectors like information technology (IT), manufacturing and retail, among others, have joined hands for group buying of renewable energy like that from wind, solar and biomass.
The first meeting of this newly formed association and its various partners including banks is scheduled for Wednesday when the modalities of the tender and terms of contract would be discussed after deciding the total energy requirement of the consortium. Rohan Parikh, head of green initiatives at Infosys, which is a key partner of the consortium, pegs the requirement to be around 500-600 million units.
The consortium has taken the Confederation of Indian Industry and climate change research organisation World Resources Institute on board to approach various banks for financial support and technical assistance, respectively. Global consulting major Accenture is also a part of the consortium.
Infosys, which is a part of the consortium, has already committed to buy 100 million units per annum of green energy. The company already meets one-third of its energy requirement from renewable sources.
“Multinational companies across industry sectors have got together to collate their demand and reach out to the sellers of renewable power and lending institutions. This is so because many companies are not in the energy business and would not like to invest their capital in buying green energy individually,” said Parikh. On the other hand, banks are not willing to finance companies with lower credit ratings and companies themselves are hard put to find suitable vendors and technology.
Infosys’ annual energy requirement is 300 million units. Once this group buying begins, the company will double its dependence on green power from the current 100 million units.
The consortium plans to do a reverse bidding or auction as part of which the lowest bidder will get the tender to supply renewable energy.
As against state auctions, this would be a corporate reverse bidding process wherein instead of feeding power into the grid the supplier would supply it to corporates in the form of