The business is de-licensed and offers huge opportunities for merchant plants, regulated plants through competitive bids, captive and group-captive structures. The new procurement regulations reward strategies derived from coal mining and sourcing, equipment procurement, competitive insights, tax planning, tariff design and financing.
Recent projects show that investors use a mix of strategies, such as capex planning, advanced metering and outsourcing operations among other services to enhance revenue potential and shorten turnaround time.
The market opportunity is large with a share of renewable energy targeted to go up from 4 to 15% this decade. The sector is competitive with the entry of new entrepreneurs especially in wind, solar and small hydro. We have advised a number of renewable investors in planning, financing, acquiring, scaling-up and diversifying their renewable energy interests.
Transmission and markets
With states looking at network strengthening through private participation, the scope for joint ventures with state utilities, independent generators and renewable energy parks have increased.
Policy, reforms, and economic regulation
Government and sector regulators need to enhance investment attractiveness, establish and refine regulations to drive efficiency and equity and strengthen the sector institutions for more effective planning and oversight. The scope for more effective regulation comes from ongoing evolution of industry structure, entry of private capital and management, leveraging technologies such as smart grids, better definition of resource factors and better information availability.
Energy conservation and strategy
India’s commitment to reducing energy intensity brings together governments, international climate change agencies and the private sector to seek interventions in reducing energy use, demand-side management, standards and labeling and other conservation measures. Large energy users can take advantage of the deregulation of 1 MW plus loads to optimise costs. This can be achieved by tailoring energy strategies based on their captive or contracted supplies, cross-subsidy levies and unscheduled interchange implications, open access routes and retail tariff design.