Ladies and gentlemen, good day and welcome to the Adani Greens Q1 FY20 24 Earnings Conference Call hosted by ICICI Securities. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. 'twenty. Please note that this conference is being recorded. I would now like to hand the conference over to Mr.
Mohit Kumar from ICICI Securities. Thank you and over to you sir.
Thank you, Carol. On behalf of ICICI Securities, I would like to welcome you all for the Q1 FY24 earnings call Adani Greenaji. Today, we have with us Mr. Meesing, CEO Mr. Phunsav Wangyal, CFO Mr.
Raj Kumar Jain, Head, Business Development and Mr. Viral Raval, Head Investor Relations. I will now request the management for the opening remarks, which should be followed by Q and A. Over to you, sir.
Yes. Hi. Good afternoon to all the participants. Thank you for joining the earnings call today. What I'm thinking is before talking about Adani Green and Q1 result per se, let me briefly make a talk about the macroeconomic scenario and the industry per se in which we are operating.
As we know, the energy transaction coupled with energy solution is gaining quite a lot of market traction globally. And what effectively it means is sustainable future is now the cornerstone as well as the initiative which various member stakeholders are Now what it effectively leads to is, okay, there is a tremendous amount of shift towards low carbon economy, Which in turn means that widespread utility scale adoption of renewable energy growth needs to happen. Even in Indian context, as you would have seen, noticed in FY 2023, more than 90% of our capacity addition has been through renewable energy. Even Government of India has reaffirmed commitment for 500 gigawatts of non fossil fuel capacity target by 2,030 coupled with the fact that they had given transition milestone in terms of how incrementally every year 50 gigawatt capacity will be added upon. Now this is the macroeconomic and industry scenario in which Adani Green is operating.
Participants, as you know that Adani Green twenty. As being at the forefront of this entire energy transition story in India, we plan we continue to adopt Large scale renewable capacity and as we have indicated, we plan to achieve 45 gigawatt renewable energy capacity by 2,030. Now coming back specifically to Q1 with the result per se. On June end, 2023, We have operational capacity of 8,316 gigawatt, which is the largest operational capacity in India. Coupled with operational capacity, if I add our sign in capacity and the letter of award, today we have a locked in portfolio in excess of 20 gigawatt, This gives us a very good visibility in terms of growth which we will achieve in near term.
As you would have noticed, our renewable energy The growth has been increasing at a CAGR of 33% over the last 5 years, which is outpacing the overall renewable Now coming specifically to operational and financial performance. On a year over year basis, our operational Capacity increased by 43% and during this period we added 2,516 megawatts of new capacity actually and this is basically a combination of 1750 and then solar capacity of 212 and 544 megawatt of wind capacity. During the same corresponding period, our sale of energy increased by 70% 6023,000,000 units. Revenue from power Supply increased by 55 percent, 20.99 CR. EBITDA purely from a power supply actually increased by 53% year over year to 19.38 CRs, See you, Sia, commentate with the fact that we have an industry leading margin of 92.5%.
Cash profit during the same period increased by 55%, 1051%. What it effectively means is Purely from a leverage management perspective, our run rate EBITDA now with this 8,316 megawatt capacity stands at 7,645 PR With net debt of INR 14,800 crores by June end, to run rate EBITDA is at 5.3x 20. Now this shows how our net debt to run rate EBITDA has come down from 6.53 20. From a receivable position perspective, we remain on track. 'twenty.
We don't have any validity overdue on this receivable per se actually. And coupled with the fact that our Sovereign portfolio As a part of our entire capacity is at 87%. Now even the non sovereign portfolios, we have not been facing any issue in terms of receivable market per se. On second part on operational excellence actually, we continue to focus on operational excellence and for us with okay, safe, secure And sustainable operations remains a cornerstone of our entire multi philosophy. Now this is achieved through having proper multi O and M diligence eighteen.
And wide step adoption of artificial intelligence and digitization of our local network. Our Energy Network Operations Center, as we have spoken in the past, does real time monitoring of our portfolio Next, we will be necessary intervention and what it has going to be led to is industry leading EBITDA margin as well as consistently high Plant availability, we are pleased to inform that during this multi quarter, we have plant availability in excess of 99 multi persons And CUF for our solar capacity of 26.9%, wind of 38.7% and hybrid loaded CUF of 47.7 That is from operational excellence perspective. Our 3rd element is going to be ESG. ESG remains A very important integral part of Adani Green's Molecular operation with sustainability at the core of the entire Now when we will talk about energy ESG, yes, decarbonization of grid remains a very important focus area, but we also need to be mindful that We should be reducing the overall carbon neutral footprint. From that perspective, Adani Green operating plant 2.
We continue to be satisfied as single use plastic free, 0 waste to landfill. As you know, we are water positive for all of our operating plants for more than 200 megawatts. Now we want to make our remaining solar plant water positive as well. Coupled with this, We are also mindful of the fact that decarbonization at Asia level should not be an end to end market. What is happening at all with the supplier?
Now from that perspective, as an additional ESG goal which we have taken is we will be doing entire Study of supplier level carbonization level at our supplier activity and the focus is by FY2026, we should be able to Achieve decarbonization of our supplier value chain through our GAG supplier engagement program. That's from a decarbonization perspective, but it is also imperative that as a part of ESG, socioeconomic development of the region is Also a very important element because at the end of the day we will be operating within those market areas itself. From that perspective, Creating the local jobs supporting the local multi ecosystem either through critical intervention in health, education and community infrastructure 20. Remains a priority focus area from our perspective. Last but not the least, localization of supply chain through our comprehensive vendor development program as a part of our project management assurance group that remains a very critical focus area.
And as you would have noted, we are pleased to inform that we have 20. Largely localized procurement of tracker and continue to look forward for opportunities of wind turbines, solar modules as well as some of the critical supplies 2. Now all these ESG efforts continues to be recognized by global institutions. During this quarter, Adani Green was ranked 1st in Asia and among 10 companies globally in renewable energy 20. FTSE 4 Good Index and our Governor's score at 4.5 stands well above global utility sector average of 3.7 and Global Alternative Energy Sector Average of 4.3.
Now to conclude the opening remarks, Adani Green remains committed to produce low cost green electrons through continued focus on operational excellence, Wide adoption of new technology and widespread renewable energy market growth, we continue to leverage on digital and artificial intelligence based solutions To drive innovation and performance, just to reiterate, we continue to remain focused on achieving renewable energy capacity of 45 gigawatts by 2,030 through widespread adoption of solar, wind, solar hybrid solution as well as solar solution. So I will conclude my opening remarks here and open for Q and A session.
Thank you very much. Ladies and gentlemen, we will now begin the question and answer session. FY 20 The first question is from the line of Puneet from HSBC. Please go ahead.
Yes, thank you so much and congrats on good numbers. My first question is on your last year's Solar installation cost, given that module prices are so high, what kind of average module price did you end up And how are you what kind of IRR are you seeing on those?
So Puneet, I think for us, one most important stop is the relationships which we command with The suppliers does not necessarily put us on the short term chart of whatever the module prices you see. So that's where in our projects and that is reflected in numbers as well, we are able to command industry leading IRRs, which are, As we have mentioned, it's at least 2%, 2.5% higher than the any competitor. So that's 1. So we were not impacted that badly I would say badly by the increase in the module prices, we were easily lowered by At least 15%, then the highs which you saw. At the same time, we believe the recent trend in the reduction in the module prices is something which will benefit us significantly.
'twenty. So is it fair to say that at the peak you got a 15% discount and even as it has fallen to sub $0.18 You're still getting a 15% discount?
No, it doesn't work that way. That's what I was trying to say that in your supplier relationship, You're not supposed to be saying that I'm market minus X. Yes, we are market minus X, but In times when the market is stressed in terms of very high prices, we do get preference, which is more outsized Compared to what you would have in case when the markets gets favorable for double digit. So it's not a consistent number, but yet Our relationship is something which gives us something which is better
than the market. Yes. So current module prices Discount should be lesser. Is that what you're saying? Because you smoothen it out.
Is that right? Yes.
We will get preference in the market Price but not of the numbers which we had earlier mentioned that we are able to take 10% to 15% discount, but Not at the depressed prices of what you see what you are seeing today. Those discounts will obviously be there but much lesser.
And this is your discussion, what are your thoughts on the module prices? Is there room for them to go down or you think they should be bottoming now?
So I think, see, module prices has multiple dynamics as you know and you have been tracking. We have seen a significant reduction over the last 3 months. So the entire supply chain, as we believe in China, is adjusting to this new reality. Whether it remains there, further goes down or it goes up, it's However, at the same time, given the current cost structures, based on the discussions which we have seen, have had with suppliers, The margin for meaningful adoption in the near term seems very, very limited. I think beyond that, it will be just doing So gazing and saying that, okay, this which way it will go because we have seen a lot of these, what is it, forecast doing wrong badly in past.
Puneet, just to add 2 more music points on that, okay. I think what you should be also with mindfulness, headline number not personally gives The entire correct picture actually. What sort of technology which is being provided? For example, Even in Mullica solo module, Mullica, per se, you would have noticed that Mullica there are Mullica various Mullica technologies. So effectively what is happening is Mullica Adani Green Being a preferred partner for many of these American module suppliers gets the ability to adopt Some of the early technology ahead of American market curve, that is first thing actually.
Secondly, one thing which is also important is because we focus so much on developmental So from our execution perspective, we have got a much longer period of development of these projects Compared to let's say, Manik, okay, classic way of developing a project. I just thought of adding these two points.
Right. So this is very useful. Thank you, Mr. Rangoon. My second is on your the numbers for Q1 for winged CEUF and the hybrid portfolio CEUF.
So VINCE UF seems to have fallen, but hybrid is up. How should one read this?
Yes. So I I think there are 2 cases of it. When it's okay, when it's here, yes, you are right. It has maybe come down on a year on year basis From 47% to 38.7 percent and this is going to be largely on account of 2 elements actually. One is, it was okay during this 1st quarter per se, Wind speed was relatively little lower compared to the last year.
Secondly, okay, there was the 4th major event of Before your cyclone in the state of Gujarat actually where a large part of our wind portfolio is management. It's located right now. So these two elements, I can say let's say, okay, we'll see here for wind beam is lower. Now from a hybrid perspective actually, Hybrid is basically, as you know, is a combination of solar and wind. And if you look at our solar fleet per se, the solar fleet has consistently So I think you should look at the hybrid portfolio from that perspective.
Bhag, do you want to add anything? Sure. So I think it is also a fact that some of the advanced technology plants have come to operations post 2018. Last year's Q1. So obviously that impact is coming here that technology play It's giving us much better revenue on a per megawatt basis this year.
So lot of tracker based plants, lot of bifacial based plants, Those are available now for the full quarter of this year. So and it's being added in the revenue, which is what you are seeing here. So and that is the reason what Pankaj was telling that we have been able to adopt technology much better than others and that which is what is yielding results for us. Yes. And just to put it in perspective, Our hybrid portfolio in last quarter, basically quarter 1 FY 'twenty two was 3 90 megawatts, whereas right now we have 2,140,000 megawatts, which also includes some of the technological element which Raj was talking about.
Right. So basically, what you're It's a new portfolio, so it benefits from higher CUS. And second, but it didn't get hit 2. It didn't get hit by the same, the PerJoy
impact? So, yes, most see, as you know, hybrids are For us are more solar heavy. So it's both project by project 360, 100, 600, 150, 450, 420 and 105 and in case of 700, it is 60510. So this is a split between solar and wind. So all those are solar heavy.
So the impact of Bikur Joy on solar was obviously relatively much lesser. 2nd, Bikur Joy impacted Gujarat much more than its impact in Rajasthan, which was more limited. So the impact was probably For a day or 2, Max, in Rajasthan, whereas it was significantly more in Gujarat in terms of extending number of days.
That's very clear. Thank you so much. Just last one, if I may. Between your new plants, what kind of solar 2 years are you experiencing? And the green series, if you can give some light
color, it will be very helpful.
So it depends again on The plan configurations and how, where and all of those things. But I can probably give you a range that we are talking about now a COF of close to 33% to 34% for solar, Whatever we are implementing based on the new technologies which we have adopted and moving ahead further. 2nd, in case of wind, it is much more specific to the locations. So the near term development which we are talking about, I think Those are around the industry numbers because we are going with a higher wind sized turbine. So the relative CUFs would be On a per megawatt basis, it would be lower, but on an LCOE basis, it is going to be much better in these areas.
So
Sorry? 3 megawatt plus turbines is all that you are addressing now?
Yes. We are this year onwards for the site in development, which is In Havra, so we have one site which is finishing its development, which is 2.1 and 2 megawatt 2.2 megawatt turbines, We're just finishing its development very soon. For the second site and the site next year, We are focusing on high wind regions and that's where the we are deploying 5 plus milliwatt turbine And that's where you will see these new turbines made for those sites It's being used and giving us on an equity basis much better performance.
That's very helpful. I have some more, but I'll come back in the queue. Thank you.
Yes, sure.
Thank you. The next question is from the line of Nikhil from Bernstein. Please go ahead.
Hi, thank you for the opportunity. I think my first question is in continuation to the previous one. If you could just Give us some specifics on wind PLFs going forward, what should we consider given this continue to disappoint everyone in the industry in general. So what would be like a P90 pillar we could assume for existing and future assets, Gauguin?
So I think, As I said, this is site to site. Specifically, giving one number becomes difficult for me to respond, but I think I can ask Virel to engage with you on that. With respect to going forward for the large site which we are developing now in Kavda, There we expect the QF to be in the range of 38%, 39% per se. And I think Key numbers would be a bit more realistic there just because it's an unhindered site with nothing in front of it And directly facing more or less the sea and the wake effects are significantly lower and we have the 2. Back record of last 6 years, close to 6 years now in terms of measuring the data there.
So we are pretty confident on that particular side. But at the same time, I agree For most of other locations which are impacted by some of the reasons which I had mentioned, which is more new turbines, the changes in the contours, Changes in the business happens, those are more impacted and we have seen underperformance. Let me add, this is Amit, Just to kind
of give another a bit of a color on this. I think while we are looking at PLF, I mean, the performance of a wind It's a nonlinear function. So, it's very important that we maximize the performance of wind turbines. And To be able to do that, we are doing a very deep investigation using our digital and AI tools to essentially focus on 2 areas. Area number 1 is to detect problems before they happen, to have a proactive approach of Solving any issues which might arise.
And this will ensure that we are improving our performance 'twenty. When winds are blowing well, but also there are other variables like pitch and yaw and multiple other variables which have to be factored in To ensure optimum generation of electricity and reduce LCOE, so that is one big area of focus. The second area of focus is essentially to have a very performance led, If you like, focus area in our O and M, where we are focusing on improving the performance per se of the wind turbine And PLF is one function of it, but I think we should look at the overall generation and maximize an SOE reduction essentially. So Those are the 2 kind of mindset we are following and we believe that will drive better results for us both in Kavra and beyond.
Got it. Thank you. One related question is in terms of sourcing. So there have been some developments in Europe, which Understand doesn't impact India per se because that's even higher rated turbines. So what would be the sourcing strategy both on the wind and solar side?
If you could share some color 6. On solar, how much is Chinese versus domestic mix? And on wind, plans for future exposure to Siemens, Comisha or to domestic place? Yes, I
think I'll just maybe give a bit of a color and invite Raj as well to add. I think when it comes to wind, I think it's important we customize our wind turbines To the geographies we are operating in because it's and I think we have also realized that having right inventories for Bearings, turbines and other equipment is important so that you are able to bring the plant up and running quickly.
So our As we have
stated earlier in the opening remarks as well, our medium to long term strategy is to localize our supply chain And we will continue to do that. And we will take advantage of any price gaps or any movements 2020. To take advantage in repowering or in new projects, but our overall strategy is to localize. And I think the European problem is very well aware. We obviously use some of those suppliers, but the turbines we use here are different And the problems are also different.
And we are working with all of them proactively to make sure that we are not as impacted as I think our European friends are.
Yes, sure. So thanks, Amit. Just taking this forward for wind and solar, as you mentioned specifically, separate. 1, Wind going forward and for we offered the site of Kavura to multiple vendors and saw that which turbines 2. Can actually be best suited for this particular thing.
And the good part is the group has its own strategy on supply chain could develop Turbine for this particular tower pipe, which is what we intend to use in this area given the fact that our analysis shows that Those turbines are best in terms of generation and LCOE for this particular area. It's one of the very good wind sites in terms of wind speed An effective wind speed, I would rather say, and which is where I think the natural Strategy there is to buy this locally made turbine, which is customized. So that's the most important thing which I want to highlight, customized for this Now coming to the remaining supply chain, When it comes to, say, solar, so we have been working with respect to developing the local ecosystem. Again, within the same strategy, the group has a manufacturing capacity for multiple components now. There is module tracker which are there.
Within the module ecosystem also we have multiple options. So a lot of our project has all of these taxes as a pass through. So obviously, that opens up Significant sourcing opportunity from low cost areas in China and elsewhere. There are places where we can Dimize between domestic supply as well as supplies from overseas. So all of this is something which will Which is part of our sourcing strategy.
And as Amit mentioned, as we move along, some of this will move to local supply chains We are actively engaged in getting those developed.
Okay, understood. Just to understand then on modules then, I mean the dependence would continue to be on China at least in the ALMM comes in. Am I fair to assume that?
I'm not necessarily impacted too much by the You can say it does not fall into the guidelines of ALM right now. As we contract more, it may. So That's where I'm in an advantageous position. I can easily source from the cost competitive countries. But I think the more factor for me is whether the BCDs are pass through or not.
The good thing is in almost All of my portfolio, except in few cases, I have this particular duty as a pass through as a change in law. So that is where I'm optimizing my project cost and I'm optimizing the LCOEs. But it is well understood and that is a 2. Clear cut focus from the management that we need to develop the supply chains in a manner Which can support our future growth while we are sourcing the modules for our future projects. Nikhil, just to add actually, if you recollect in the last earnings call, we specifically guided that as far as this financial year is concerned, The capacity which we are building up has doesn't fall under the ALM as well as DCD pass through.
So all the modules will be procured from Overseas actually and as far as our rail project in this calendar is this financial year is concerned that is in the Kamara region actually where Raj was talking about we have a customized WTG, so that will be locally sourced upon.
Perfect, perfect. That's very clear. Thank you. Just maybe then two last questions. One is, if there was any Informed Power sale this quarter as well, which was a big support last time?
And second on funding, if you could share any updates on equity on all debt side?
Yes. So, Infirm Power during this Quarter has not been that significant actually. And if you recollect the same discussion which happened during our last quarter on the earning call Also, in this quarter, actually, Informed Power is approximately around R44,000,000,000 actually no, R20,000,000,000 from this specific project, sorry, R20,000,000,000 But what we do expect is, okay, where our capacity addition is planned for this financial year, Infirm power will be progressively, especially from Q3 onwards will have will continue to play a more significant role. But for Q1, it is only 20% and for Q2 also, we are not expecting that much meaningful that much significant contribution from Incom Power. And from financing perspective, actually, for this financial year, as we might have guided, we are targeting 2.8 to 3 gigawatts And out of which actually maybe for 300 megawatts of financial closure, already already achieved, balance will be 150 megawatts, already already achieved.
For 3 30 megawatt megawatt megawatt megawatt megawatt megawatt, which is under construction, that also is a financial closure achieved. For wind, 2 60 megawatt, we have received the term sheet. 2. That is under merger finalization. And for balance capacity, that will be tied up through as a part of our construction facility where Bank Group's So, diligence is already completed actually.
Bank Group is already identified. And in next month, 1, 1.5 months, we should be completing our financial closure for that.
Understood, understood. Any updates on the equity side? There was discussion of QIP or some other investment, anything of that or 2. Not at this point.
Yes, not at this point. What we can say is, okay, the Board has recommended up to USD 1,500,000,000 QIP, which is currently under Regulatory approval process and subject to shareholder approval, as you know, we will be having 1 year to finalize the controls of liquidity.
Perfect. Thank you so much for answering my questions.
Thank you. 'twenty. The next question is from the line of Puneet from HSBC. Please go ahead.
Yes, thanks for the follow-up. My first question is how should one think about You in the bidding trajectory. I don't see too much of your name in the current tenders. What is the strategy there? And secondly, what is the progress on the manufacturing intended?
So Puneet, this is the This is an advantage of being logged in fully and acting in time to tie up the capacity. So as I've mentioned in last Also for my execution over the course of next 2 years, whatever we have planned, we have the PPA's in hand, the projects in hand. So logically, I'm not in any hurry whatsoever to tie up additional capacities because generally you get 24 months to 24 months Roughly for execution, so I only have to jett. However, we continue to look at the market For opportunities which can provide us real data, so if there are data opportunities or alpha opportunities, we You may see us participating, not for plain Manila solar and wind tender right now because we have Our plate full for that right now for the next few years.
Yes. I think our focus really is on execution. And as you may recognize, to deliver 45 gigawatt in 2030, we need to really ramp up our operating capacity. And me and my entire management team is focused on delivering the PPAs we have signed And maximizing the performance of those PPAs to make sure that we deliver above average returns. And from existing installed base, We look to optimize and improve our performance as well.
There's no reason for us to essentially go out and tender right now until there is an Opportunity like Raj talked about, which is attractive and high grade our portfolio.
But how should one think about
the capacity constraint? You're still installing 3 gigawatt out of potentially industry doing 15. So Is there a capacity constraint you're talking about in terms of execution? Is it more management bandwidth capacity constraint or just the vendor related capacity constraints?
I think there are 2 dimensions to this, which maybe are the ones which are in our radar. The first dimension is Developing an ecosystem of suppliers and contractors. We are now starting to touch The upper limit on capacity of the ecosystem. So, it's very important that we proactively Work with developing suppliers and vendors. So we have rolled out a very comprehensive vendor development program for our key suppliers 2.
And we are strategically sharing our designs and plans with them to make sure that we develop them And we get them to be ready at a lower cost of operations to kind of match with our timelines. And the second one is essentially manpower and human resources on the ground, which is also very important to recognize The country is growing and manpower needs to be trained. We have very important and right focus on safety, On making sure that we bring these people and get them up and running and train. So we are again proactively launching that And making sure that we focus on that over the next few years to ramp up that capacity and also tie them into our agreements. So those are the 2 kind of dimensions we are focusing on amongst many others.
And we feel that will be kind of What will be an area of focus for us in the near future.
And in terms of physical, when are you To launch your own modules and their own wind turbine, what is the timeline for the commissioning of those projects?
Yes, sure. So from the perspective of these equipments, I think I just want to clarify that it is part of Adani Enterprises. 2. The group is developing its manufacturing facilities as part of that venture. Within that, as we understand, 4 gigawatts of module manufacturing capacity of mono PERC as well as the Topcon modules are already up and running.
And they are backward integrating that further down to invert and wafer in stages and then probably polysilicon, etcetera. But they also have Significant tie ups for ancillaries just in terms of co investing in glass module, 3 AM, etcetera and other entities to ensure that the cost for them is competitive. That's one. The 20. Wind turbine manufacturing is already up and running.
As we speak, they are awaiting the last clearance From M and A to be able to commercially launch the wind turbine and that can come anytime. So they have the ability to now start producing this particular turbine. What is the capacity there? 'twenty.
I think it's worth maybe joining the AEM call and maybe have Yes, yes,
I think that will be better. Yes.
Okay, understood. And the status on your manufacturing, you will tender. Have the final PPAs signed in line now?
So I think out of the 8 gigawatt, we are close to 6,200 megawatt already signed, 1799 megawatt is to be signed, All of which we are in very, very advanced discussion with Seki, where we believe over the course of next 1, 1.5 months, A significant part of this will be closed.
Understood. And lastly, if you can give some guidance on your Thoughts on the CapEx to EBITDA, what kind of numbers are you targeting now? 2. Your CapEx EBITDA, what kind of gross profit EBITDA would you be targeting?
Yes, sure, Manav. So as we have I think our run rate EBITDA for this for corresponding to this 8,316 megawatt, We are talking about run rate EBITDA of around RMB7,645,000,000 actually. And adding to 2.8 to 3 gigawatts of Incremental capacity, which we will be adding in this 1 of the financial year, we are going to be talking about approximately 10,000
And the gross block for the lift?
So in terms of for incremental capacity you're talking about?
Yes, for incremental.
Yes. So I think what we are CapEx cost per megawatt which we are broadly talking about excluding DCT for solar projects Between will be 4.8cr to 5cr actually. So that is 1 megawatt will be added for wind. Wind, it will be close to 6 point 3 to 6.5 crores per megawatt. And so this again is industry leading in terms of the cost of power
Clearly, wind is very impressive. Thank you. That's all for my question. Thank you.
Thank you. The next question is from the line of Nikhil Abhyankar from ICICI Securities. Please go ahead.
Good afternoon, sir, and thanks for the opportunity. Sir, you mentioned earlier that we are looking to focus on execution in the coming years. So when should we expect you to participate Back again in new projects, build our 45 gigawatt capacity.
Yes, sure. So I think just to be very clear, as you understand the industry, the moment I take up one capacity today, I need to ensure that I'm implementing that within next 2 years, Okay. And what I mentioned as response to my earlier question in the earlier question was that they're logging for 2 years. So You would see us probably doing more locking in capacities in the next 6 to 8 months as Some of this capacity I start tying up for period beyond 2025. And there again, just to rehighlight what we mentioned last time in our call is, I already have significant flexibility We're able to prepone some of the capacities which fall after that period out of my existing portfolio.
So Parthi, I'm no I'm under no pressure to really get into the competitive bidding right now. And that's where the focus would be is that if I instead of going into competitive bidding, I do other things which basically ensures that I am able to get the delta. And you will see us moving through that over the course of 6 to 8 months in terms of being able to highlight some of those things as we move.
Understood. And sir, now there's a lot of buzz around the C and I segment shifting towards renewable. So how is the demand and how are the inquiries going on over there?
So yes, you're right in terms of the decarbonization drive, which everyone in the world is now committing to For all the reasons, which is which you know with respect to whether they have their own commitments, whether the countries have their own commitments, whether the Exporters need to satisfy the requirements of their clients. So decarbonization has become a very 2. Big theme and the opportunities around that is expanding very rapidly in the market. Added to that, for us, within the group also, there are additional opportunities for which we get inquiries. So that is one thrust area for us where you will see some of the capacities being added to our portfolio.
And I think 'twenty. As we do that, obviously, we will be able to tell you. But just coming back to the point that From the overall perspective, having wind solar along with hybrid sites, along with PSPs, along with Capacity around other storage, the level of opportunity which AGL has and the way it can serve the clients 'twenty. It puts AGL in a unique situation to solve this. So I think from an opportunity perspective, this is big for us And we are fully focused on it and you will see some of that from our side.
The market is picking up. There are multiple models which are working in this particular thing because everyone has their own needs. We are fully into it and I think You will see more of that being discussed in few of our next calls. Understood.
You also mentioned about the 5.1 megawatt twin turbine that the group companies developed it. So What kind of what type of projects are we looking to execute with these turbines? And are these turbines cheaper on a per megawatt basis? Or the project as a whole is cheaper. Basically, it saves us the POS costs.
So if you can just briefly touch upon that.
Yes, sure. So it's a 5.2 megawatt turbine, just to be correct on the number And as I have indicated in my earlier comment, the cost, as you know, is significantly lower on a per megawatt basis than the 'twenty. Alternatives available. However, the largest of the wind and the big turbine, the per megawatt generation, Which is basically where Syria also goes down and we are aware of that. And that is where we look at all these from an LCOE perspective and The LCOE for these wind turbines, because of those being more suitable for the sites which we have chosen, Gives it a significant advantage for us.
So I think these are wonderful turbines 'twenty. When we are looking to deploy them in Kavra and because those turbine these turbines whether it is size, whether it is the Performance power curves, whether it is thrust curves, all of that has been optimized Having 5 to 6 years of Kavrra wind data, and that is where we believe that these turbines will give us a significant opportunity there. In terms of turbines at other locations, while in few of the other locations, just because these turbines are pretty competitive, They may get used. At the same time, we also understand that at other locations, we would be looking for alternative supply chains. And accordingly, the decisions would be taken.
But I think it's a bit ahead for me to comment right now which other turbine I will be using at other location, which is not 2. It's in my execution plan right now.
Okay. Thank you. That's all from my side and all of us.
Thank you. The next question is from the line of Rupendar Nath Nayak from Suniti Securities. Please go ahead.
Thank you for the opportunity, sir. So two questions. So you mentioned that group is actually developing its wind turbines 2. So what cost advantage per megawatt basis do you see in the Turbine procurement from the group
and that from the other non group manufacturer,
that is one. And you mentioned that the group is also looking for decarbonization need. [SPEAKER SRINIVASAN VENKATAKRISHNAN:] So what is the capacity win? And this is from our side for the group need in next 2 to 3 years as some
of the group companies need
to make The Carbonizant Group. So there is 2 questions. Thank you.
Yes, sure. On the first question with respect to And the advantage on a per megawatt basis, I think I've mentioned that the cost on an all in basis, Including the turbine, BOS, IDC, soft cost, land, evacuation, everything put together is depending on the That location is anywhere between 6.3 crores to 6.5 crores per megawatt. Now If you have to compare it with different turbine manufacturers and there is enough data available on DAS in the market, I don't want to really comment. But the broad range with ranges which we have sorry? Sorry.
So the broad ranges we have seen is anywhere between 7.5 crores to 8 crores or 'twenty. 7.25 to 8,000,000 rupees kind of a cost in the market for a per megawatt business. But again, Per megawatt is not the right way to compare turbines. You have
to see the LCOEs
and you have to see the locations where those LCOEs are Calculated and that's where I would say that deep turbines are one of the best ones for us 2. In Khavra, which is our focus for development for wind in the next couple of years.
Okay. The structure of this turbine is for 2 megawatt or 5 megawatts, sir?
This particular turbine is It's a cumulative turbine
with a
hub height of 120 meter. They have the capability of doing 140. This 120 meter turbine with a 5.2 megawatts rated capacity has an RD of 160 meter, Okay. So this is what is coming up as our deployment in
Kavra.
The current project which we are doing right now, which is what we are finishing very soon, Do use 2.1. So I just want to ensure that I clearly specify that my current project is finishing with 2.1, But my new project which I'm implementing in Kowla that is going for 5.2.
Okay, okay. Sir, is that the group I think
It's wrong for me to probably speak on behalf of the group per se, But at the same time, enough has been said around that. The targets are set for 2,030, 2025 In different, different group companies, I can only say this is the 1st infrastructure group in terms of providing the opportunities and I think Enough is available for us on the plate to be able to cater to them on the capacities. You will see some of those as it crystallizes in terms of the project, some of those being mentioned. But we are not necessarily in that of PPA tie ups for being concerned about whether this comes, when this comes along. So it's a good opportunity for us which is available coming from the group.
So we will use our expertise.
Okay, perfect. Thank you.
Thank you. The next question is from the line of Puneet from HSBC. Please go ahead.
Yes. Sorry, thanks for my question.
Sir, you can go ahead with your questions.
My question has been answered. Thank you so much.
All right. Thank you. Loan
telephone.
Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference back to the management for closing comments.
Yes, thank you. I think it's great to have I see a question maybe somebody is asking from Dhruv.
Yes, sir, one question just came up. It's from the line of Dhruv Munchal from HDFC Mutual Fund. Please go ahead. Mr. Dhruv Machal, your line is unmuted.
You may go ahead with your question.
Can you hear me now?
Yes, sir. We can hear you now.
Yes, sorry. So thank you so much for taking the question. Sir, the question was related to the wind. You seem to have an advantage because of the Because of your specific design wind turbine and the location. But I also wanted to understand, I think the Kavda location, it seems that the turbine works in the Kavda location best, but Wasn't the Kavda location specifically for the hydrogen plants for the group?
Or if not, then what is the potential Of wind capacity that you can put up in this location. I mean, I'm just trying to understand what is the scope which is available, which is very easy to grab?
So Dhruv, I think while that is a potential use case, but at the same time, as we understand From the group, group is in very, very advanced stage in locking in a very large location, Much bigger than Havdal Park what we have for their hydrogen requirement. So that's where there is This particular entire path is something which we are developing, is being fully utilized by us For the AGL projects, we are not envisaging any hydrogen related to its shares. And This is something which will which further derisk us significantly in terms of our execution. As you can understand, That out of the 45, close to 15 gig land is single location. So that basically the risk Significantly.
So I think that's what it is. And the wind potential is something which is easily north of 2 gigawatt, more wind we are currently tying up, but yes, initial estimates are not of 2 8.
So you mentioned 2 gigawatt?
Yes, not the 2 gigawatt.
Yes, okay.
But again, it's something, Dhruv, It is not necessarily frozen and that's where we would necessarily say this is the final number. We are doubling on it. Let's see what we are
It will evolve. Got it. And sir, you also mentioned with the CNI, you are also planning for pumped hydro. There were some discussions earlier about pumped hydro. You have I think Got a few contracts in AP, but I'm not sure of the incremental developments.
Are you executing a few projects, probably the size and scale if you can highlight something? What stage are we in?
Yes, let me maybe just quickly answer and then I can wrap up as well. So I think On the pump hydro, I think we are in advanced stage of engineering design and project study. 'twenty. We are expecting to approve FID in the due course and we should be able to kind of share with you an update In the later part of the year on our initial project engagement and execution plans. But it's fair to say that pumped storage will It is a key part of our strategy and it will be a significant part of our portfolio in the next Few years as we grow towards 45 gigawatt.
And I think this kind of questions you already asked, A lot of our C and I customers are asking for round the clock renewables or as much as possible renewables. So we will make sure that our approach is Designed to service those kind of requests and maximize returns for the investments we're making in our projects today. And these large land parcels we have access to. Remember, we have also installed in advance 2 years, 3 years of wind, mass and resource assessment, which is allowing us to maximize performance of the wind turbines and which has gone as a key input to our suppliers in designing Whether turbines or all the balance of systems, and we are very confident that this approach is going to deliver Lower cost of energy, electricity and maximize our performance as AGEL. So Thank you.
I think we've run out of time.
Thank you
so much, sir. Thanks.
Yes, if I can quickly wrap up. I think I'll reiterate what we said in the opening remarks. We are really razor bent on our target of delivering 45 gigawatt In excess of 45 gigawatt by 2,030 through the use of SolarWind and SolarWind Hybrid Solutions as major contributors. I also want to really thank my team and their dedication for delivering such outstanding performance and More to be continued. Thank you very much for joining us today.
Back to you.
Thank you. On behalf of ICICI Securities, we conclude today's conference. Thank you all for joining. You may now disconnect your lines.