BluPine Energy is a renewable energy services company that is aiming at developing a green energy portfolio of over 4 GW, comprising largely of solar, wind, and storage assets, with a view to providing its customers with comprehensive, cost-effective, and sustainable low-carbon solutions. In this exclusive interview, we have Rahul Mishra, Head – C&I, BluPine Energy, discussing the growing inclination of commercial & industrial (C&I) customers to go in for green energy.
Let us start by understanding the overall inclination of C&I consumers to go in for green energy, as a matter of choice. Are there statistics to understand if the proportion of C&I consumption in India’s overall green energy consumption has improved over the years?
When it comes to commercial and industrial (C&I) consumers, there is a significant global and Indian context to consider. Notably, C&I consumers worldwide, including both major global conglomerates and smaller players in emerging markets, are increasingly embracing net-zero targets. In the case of India, C&I consumers are actively pursuing renewable energy procurement. This trend is being propelled by the presence of low-cost power solutions, growing environmental consciousness, and a commitment to net zero sustainability standards. It’s important to note that these developments are likely to influence all consumers in the future.
In India, the C&I open access capacities have experienced remarkable growth, particularly in states such as Tamil Nadu, Karnataka, Maharashtra, and Gujarat. Over the past 3-5 years, these states have emerged as leaders in this sector, collectively contributing to around 70-80 per cent of the total capacities.
As of March 2023, the overall C&I market in India boasted a RE capacity of approximately 30 GW, and it is projected to witness an additional 45-50 GW of capacity expansion. This will bring India closer to achieving its target of 75-80 GW in C&I renewable energy capacity.
How is the current policy framework supporting green energy usage by the C&I sector? For instance, has the “Green Energy Open Access Rules, 2022” had any positive impact?
While central guidelines exist, it’s important to recognise that India’s complex federal structure necessitates that each state formulates its own policies for power procurement through open access for Commercial and Industrial (C&I) consumers. The success and viability of C&I open access projects heavily hinge on the specific policies implemented by each state, as well as their willingness to support such initiatives.
The introduction of Green open-access regulations has triggered a re-evaluation of the C&I open-access landscape in many states. Consequently, states like Andhra Pradesh, Odisha, Rajasthan, Haryana, and others have taken steps to develop their draft policies in alignment with the central framework. This reflects an evolving approach towards facilitating open access for C&I consumers and promoting sustainable energy practices on a regional level. We remain committed to collaborating with all stakeholders to create an environment that promotes the growth and sustainability of C&I open-access projects across the country.
Please discuss how BluPine Energy is promoting the use of green energy by the C&I sector.
BluPine Energy aims to be a reliable and trustworthy partner for C&I consumers looking to implement net-zero and carbon-neutral strategies. Our tagline, “Your Preferred Green Energy Partner,” reflects our commitment to this mission. Our senior management team brings extensive expertise, with over 100 man-years of experience in the C&I sector. We have a deep understanding of open access regulations across multiple states in India, as well as proficiency in areas such as development, power purchase agreement (PPA) structuring, and negotiations.
As a company, we offer a range of renewable energy solutions, including wind, solar, hybrid, and storage options tailored to the needs of open-access C&I consumers. We facilitate the sale of renewable energy solutions both within states (intrastate) and across state boundaries (interstate), providing our customers with flexibility and access to sustainable energy sources.
Currently, we are operational in states such as Karnataka, Tamil Nadu, Maharashtra, Chhattisgarh, and Uttar Pradesh. We are also actively exploring opportunities in Andhra Pradesh, Orissa, and Gujarat, leveraging new policies that are expected to be implemented soon. This expansion demonstrates our commitment to assisting a broader base of C&I consumers in their sustainability efforts.
We understand that BluPine is developing a 4-GW green energy portfolio. How much of this will be dedicated to the C&I sector?
Out of 4-GW capacity, we will contribute around 1 GW capacity towards the C&I sector, and the remaining will be divided into utility-scale, greenfield, storage and M&A.
Please explain in some detail how the delivery of green energy to C&I consumers from BluPine Energy’s RE generation assets will take place.
Our operations encompass open-access grid-connected renewable energy plants that are linked to either the state utility grid network or the Central Transmission Utility (CTU). We facilitate the sale of renewable energy solutions both within individual states (intra-state) and across state boundaries (inter-state), ensuring that our clients have access to sustainable energy sources wherever they operate.
Our portfolio includes a wide range of offerings, such as wind, solar, hybrid, and storage solutions tailored to the specific needs of open-access C&I consumers. This adaptability enables us to address a wide range of preferences, resource availability, and environmental concerns, resulting in a well-rounded approach to sustainability.
Furthermore, our provision of long-term PPAs demonstrates our commitment to forming long-term, mutually beneficial partnerships. This dedication to stability and sustainability serves as the foundation for our collaborative journey to a greener, more sustainable energy future.
Energy storage is now regarded as a critical complement to green energy, to ensure RTC availability. Please discuss the evolving role of energy storage in RE consumption by the C&I sector.
Storage is becoming increasingly important as renewable energy is increasingly injected into the grid. To ensure reliability, we anticipate it being integrated with solar, wind, or solar-wind hybrid solutions. This will soon be extended to C&I open access projects, increasing the dependability of renewable energy supply. Battery storage, like utility projects, will be critical in managing the reliability of renewable energy supply. BluPine Energy is committed to paving the way for a more sustainable energy future.
How is BluPine Energy inducting energy storage into its line of business? For instance, how much of the 4 GW of RE portfolio will be supported by energy storage?
The projects we win through bidding determine our storage capacities. Capabilities for utility projects are defined by bid documents and executed accordingly by tenders we win. Storage in C&I is dependent on the reliability of the power supply as specified in PPAs. Storage integration in C&I projects in India is still in its infancy. With increasing scale, we can expect 10-20 per cent of projects, particularly in large-scale interstate transmission system (ISTS) ventures. This is an evolving landscape, and we will continually assess and adapt our portfolio’s storage capacities as we progress.
There was a time when industrial consumers viewed group captive power plants as a reliable alternative to irregular grid power. Do you see the relevance of such group CPPs based on RE power in conjunction with energy storage?
Yes, CPPs are relevant to RE power and we will see them evolve and change in the overall C&I sector over the next two to three years. These changes will be based on the demand/load of the following PPAs becoming a new norm. In addition, we will see a significant power exchange in the market, which will add significant value to how the C&I PPAs are further structured by renewable energy generators.
What are the typical challenges in the path of RE adoption by the C&I sector?
Three critical pillars underpin the success of the C&I sector. Firstly, the regulatory framework serves as the foundation, shaping the operational landscape at both state and national levels. The effective implementation of regulations is critical, as it affects every aspect of the C&I business. Secondly, the resilience of the evacuation network and system is critical. The smooth flow of power, both within and across states, is critical for smooth operations. Finally, the ability to manage excess energy or address shortfalls in generation is critical for smooth operations. Establishing backup sources, such as exchanges, provides a critical safety net for scenarios where off-takers are unable to consume the allocated energy.
These three interdependent elements collectively form the backbone of a resilient and sustainable C&I sector, facilitating a reliable and efficient energy ecosystem.
Given that there exists huge untapped potential for RE adoption by the C&I sector, how do you see the years ahead for BluPine Energy?
BluPine Energy’s goal of developing 4 GW within the next 3-4 years is indeed ambitious but given the Indian context, it’s certainly doable. We are well positioned to meet these targets thanks to the backing of investors with extensive global energy investment experience, as well as a substantial capital commitment. Moreover, the management team’s hands-on approach, combined with their significant expertise in managing independent power producers (IPPs), is a valuable asset in carrying out the overall business plan. BluPine Energy’s growth in the renewable energy sector will be bolstered by this combination of strategic vision, financial support, and operational expertise.
