Renewable energy developers are diversifying their business operations to set up more hybrid and round-the-clock (RTC) renewable projects and pilot green hydrogen projects. Headquartered in Bengaluru, Ayana Renewable Power is one such developer that has been active in the RTC space. In an interview with Renewable Watch, Shivanand Nimbargi, managing director and chief executive officer, Ayana Renewable Power, shares the company’s experience with hybrid and RTC projects, his views on tariff and non-tariff barriers on solar components, and the future outlook. Edited excerpts…
What were the key developments for Ayana Renewable Power in the renewable energy industry in the past one year?
Ayana Renewable Power has established itself as one of the fastest growing renewable energy companies in India, boasting a portfolio of 5 GW of projects. We have also differentiated ourselves through an unwavering commitment to environmental, social and governance (ESG) practices, and were recently rewarded an A(-) rating from ISS ESG, ranking us among the top three global companies and as the highest performing company in Asia in the renewable energy sector for excellence in ESG performance.
We have cemented our commitment through initiatives like the opening of a new skill development centre at a wind project site and the expansion of the existing one in Bikaner, empowering local communities and fostering a skilled workforce. Ayana’s dedication to sustainability has won the company prestigious awards, including the Mahatma Awards for ESG excellence. This commitment to ESG practices extends seamlessly into Ayana’s business strategy. The company has made a pivotal transition, evolving from a conventional wind and solar project developer into a provider of integrated storage-based RTC renewable energy solutions. This strategic shift is marked by two major achievements: securing a 300 MW RTC tender from Railway Energy Management Company Limited, representing one of the largest RTC tenders in India, and executing an agreement with Hindalco Industries Limited for a 100 MW RTC solution for their plants in Odisha, marking one of the largest commercial and industrial transactions in the renewable energy sector. These landmark projects not only demonstrate Ayana’s technical expertise but also position the company for accelerated growth in 2024 and beyond, solidifying its position as a leader in sustainable energy solutions in India.
What is your view on tariff and non-tariff barriers on imported solar components? How have these barriers impacted the developers?
India’s ambition to become self-reliant in the renewable energy supply chain is commendable, and the government’s initiatives to enable this transition are applauded. However, teething issues persist due to the current supply-demand mismatch arising from the ramp-up of domestic manufacturing capacities. This gap creates dependencies on imports, and the recently implemented tariff and non-tariff barriers have added to the cost implications.
The recent decline in global module prices has presented a golden opportunity for solar developers worldwide. However, Indian developers face constraints in fully capitalising on this situation due to various tariff and non-tariff barriers.
At present, India’s domestic module production capacity is insufficient, further exacerbated by the surge in exports by local original equipment manufacturers. This situation, coupled with the 40 per cent duty on modules, has rendered some projects that have been bid, commercially unviable. Additionally, concerns exist among Indian developers about regulations related to the Approved List of Modules and Manufacturers, which could potentially disadvantage them in the global market. Recalibrating timelines is crucial to address this concern.
How has been Ayana’s experience with RTC projects? What are the key operational challenges while developing such projects and how can these be resolved?
Aligning with our vision to be a cost-competitive, true RTC renewable energy supplier, Ayana has built a strong portfolio of 850 MW of contracted hybrid and RTC projects. Through rigorous data analytics, resource estimation, and engineering capabilities, we confidently deliver tailor-made RTC solutions catering to diverse customer requirements. Our deep understanding of renewable energy integration with storage allows us to provide a reliable and consistent RTC renewable energy solution, overcoming the intermittency challenges inherent in renewable energy.
While we continuously strive to improve forecasting and scheduling, crucial for such solutions, the lack of meteorological data predictions at necessary intervals remains a challenge. We are actively urging meteorological departments in India to make this data readily available in the near future. To ensure optimal location and output, we carefully consider site conditions such as wind velocity, solar irradiation, and land availability when developing wind-solar hybrid and RTC projects. Additionally, we focus on seamless grid integration through advanced technologies and smart grid solutions.
While hybrid and RTC projects offer significant advantages, optimising power despatch and ensuring grid stability require advanced forecasting and scheduling techniques. Collaboration between developers, policymaker, and grid operators, is crucial to develop and implement the necessary policies, technologies and operational practices.
Ayana remains committed to exploring and implementing innovative solutions to optimise the performance of hybrid and RTC projects. We believe these technologies hold immense potential for India’s renewable energy future, and we aim to play a leading role in their development and deployment.
Going forward, what are the expected cost and tariff trends for RTC renewable energy projects? What will drive cost reduction of such projects?
The anticipated cost and tariff trends for RTC renewable energy projects are promising, with projections of costs declining to Rs 4.60-Rs 5.60 per kWh. This positive outlook is driven by several key factors and is dependent on policy and regulations:
- Economies of scale: As more RTC projects are developed, economies of scale will lower production costs for components and equipment, making them more accessible.
- Technological advancements: Advancements in renewable energy technologies will improve efficiency and reduce costs per unit of generated electricity. Notably, battery storage costs, a crucial component of RTC projects, are rapidly declining, making these projects more cost-effective. Additionally, the availability of long-term energy storage options like pumped hydro with minimal ongoing operational expenses further expands the cost-competitive landscape.
- Government policies: Supportive government policies, such as subsidies and tax incentives, promote RTC renewable energy development and further contribute to cost reductions and tariff declines. These policies recognise the crucial role of RTC solutions in achieving India’s ambitious renewable energy goals and securing a sustainable energy future.
Ayana Renewable Power’s commitment to delivering affordable RTC power is evident in its strategic third-party storage arrangements. While cost, cycle life and capacity degradation of storage remain potential challenges impacting pricing, continued government support and investments in research and development for new and emerging storage technologies hold immense promise for further cost reductions.
How do you plan to expand your renewable energy project portfolio in the future, and what are your long-term goals in the green hydrogen space?
Ayana Renewable Power is ambitious in its expansion plans, aiming to add 1.5-2 GW of renewable energy projects annually, reaching a total capacity of 10 GW by 2025. A significant portion of this growth will be driven by innovative hybrid and RTC projects, leveraging Ayana’s expertise in tailor-made solutions catering to diverse customer needs.
To test the waters in the promising green hydrogen space, Ayana is developing a 600 kW pilot project co-located with one of its solar plants. This initiative aims to gain a comprehensive understanding of the development life cycle, supply chain, and offtaker requirements for green hydrogen projects.
Ayana’s expertise in providing RTC solutions offers a unique advantage, enabling the use of cost-competitive electrolysers and significantly reducing green hydrogen production costs. The learnings from this pilot will be instrumental in scaling up Ayana’s capabilities and establishing a significant presence in India’s green hydrogen journey.
