Solar play: Vedanta to bid aggressively for government projects

NEW DELHI: The Vedanta Group plans to invest heavily in solar energy to generate 1,000 MW in a couple of years, and bid aggressively for government projects as the metals and mining multinational seeks to increase generation and consumption of emission-free power, Chairman Anil Agarwal said.Agarwal, who was in Delhi for a pre-budget meeting with Prime Minister Narendra Modi and top officials, said he was inspired by the government’s aggressive push for increasing renewable energy generation in the country which will reduce India’s dependence on imported fuel and help reduce pollution. “Our maximum focus for energy is in the renewables domain. We will be participating in large government tenders that are coming. I’m looking at renewable energy sources contributing 20% of the energy we generate,” Agarwal told ET.Vedanta will continue to invest in oil and gas. It has bid and won many oil and gas exploration blocks, from which it hopes to add to its sizeable production from its oilfields in Rajasthan. India will continue to need oil and gas for a long time, and the government needs to give incentives to companies involved in natural resources as the sector has a phenomenal potential to create wealth, reduce imports and create jobs, he said.In addition to investment in the conventional energy sector, Vedanta wants to step up renewable energy generation to balance its energy portfolio between fossil fuels and clean electricity generation, Agarwal said.Vedanta aims to significantly expand its existing portfolio of 300 MW of wind and solar energy capacity by participating in new projects offered by the government, he said.“From 300 MW, our first goal is 1,000 MW. When we get there depends on government tenders. We are looking at a couple of years, or three years,” Agarwal said.Agarwal said he fully supported the government’s aim to significantly increase renewable energy generation in the country because it was a clean, emission-free source and costs had fallen rapidly in recent years making it a viable option.“The prime minister’s dream is that 50% of India’s energy will come from renewable sources. That’s a great dream. We fully support it.”The government’s programme of tendering solar and wind energy projects has helped India expand its renewable energy capacity rapidly and attracted companies from Europe, Middle East and Africa, but project developers have complained that cut-throat competition had reduced their margins considerably because companies bid recklessly to win projects.

from Economic Times http://bit.ly/2FpBgwL