Global power equipment supplier Alstom is working on its smart grid power equipment business plans for India as the country moves fast to adopt the new technology to support its ambitious capacity addition programme in renewable energy.
The company is in talks with Schneider Electric to explore the possibility of forging a collaboration for undertaking smart grid equipment business in the country, Alstom?s top executive said on Tuesday.
?As share of renewable power generation capacity increases in India, there is strong focus on network management. In coming years, there will be massive demand for grid optimisation in India. We are currently talking to Schneider Electric to explore what we can do,? said Patrick Kron, chairman and chief executive officer, Alstom, who is currently on a visit to India.
Because of their intermittent nature, renewable power generation sources like wind and solar can pose serious challenges in grid management. India plans to adopt smart grid technology to meet the challenge. Besides, the new technology would also help discoms reduce their commercial losses which currently stand at 28% compared to the global average of 8-10%.
?Alstom has a presence in high voltage power transmission and distribution equipment while Schneider in the medium voltage category,? Kron said while elaborating on the synergy between the two companies.
In reply to a query, he said Alstom is equipped to respond to any major change in demand for nuclear power equipment following the nuclear crisis in Japan as the company has presence across all fuel-generation segments including renewable energy.
While company?s investment plans for the nuclear business would suffer in case of a drastic decline in demand, Alstoms? existing revenues are unlikely to be impacted given that nuclear equipment accounts for just 4% of the company?s revenue, half of which comes from after-sales service provided to existing power plants, Kron clarified.