Serentica Renewables and Resonia plan to invest Rs 1.2 lakh crore as capex over the next four years, on the back of Rs 40,000 crore already invested. The group is also evaluating an entry into HVDC and power electronics, Pratik Agarwal, Chairman of Resonia and Serentica Renewables and Managing Director at Sterlite Electric told Saurav Anand. Excerpts:
How will the Rs 1.2 lakh crore be invested?
Serentica plans to add 4 GW of renewable capacity annually and build a 6,000-MWh battery portfolio while Resonia is targeting Rs 20,000-40,000 crore of new transmission orders.
What is the immediate opportunity for Resonia?
The important opportunity ahead is the Rs 1-1.5 lakh crore of transmission bidding pipeline. The orders are expected to be awarded anytime starting next week. We expect to secure around 10-20% of this pipeline, depending on pricing and the margins. That would translate into Rs 20,000-40,000 crore of fresh project wins. We are deliberately targeting fewer, technically complex projects rather than chasing volumes.
We currently have 16 projects with an asset value of about Rs 45,000 crore. Around 40% of this portfolio is operational or close to becoming operational, while the remaining 60% is under construction.
Serentica has crossed 3 GW. What is the new growth run-rate?
Our plan is to add approximately 4 GW every year. At that pace, we should comfortably exceed the earlier target of 17 GW by 2030. Serentica has already signed contracts for around 9 GW of renewable capacity, representing investments of approximately Rs 50,000 crore. We intend to remain focused on developing and supplying renewable power rather than entering solar-module or battery manufacturing.
How large a business will battery storage be for Serentica?
We commissioned our first 200-MW battery capacity in Bikaner last week. Based on existing contracts and projects at advanced stages, we plan to have around 6,000 MWh of battery capacity over the next two to three years.
The idea is to integrate wind, solar, batteries and the national grid to offer what we call “thermal mimic power” to customers. Our modelling shows wind and solar can together cover roughly 18-20 hours of the day, leaving only four-six hours to be supported by batteries. That can provide roughly 90-95% round-the-clock renewable supply.
Are you looking beyond renewables and transmission?
We aspire to enter the HVDC and power-electronics space as a natural extension of our cables and conductors business. India could require another 15-20 HVDC systems over the next 10-15 years.
We have moved further into grid technology through Sterlumiq, our cable-sensing joint venture, which enables real-time monitoring of underground cable networks.
Are you contemplating any fund raises?
We have completed significant fund raises over the past one-two years and are adequately funded for our near-term growth plans.
Do you have enough land to support the capacity addition?
We currently have about 20,000-25,000 acres to be used across wind and solar projects. We plan to acquire another 10,000-12,000 acres every year. Large contiguous land parcels with grid connectivity are critical if we want to maintain the pace of 4 GW of additions annually and deliver projects within schedule.