Clean Max Enviro Energy Solutions Pvt. plans to double its renewable capacity in the next three fiscals, with an investment of Rs 12,000 crore, driven by demand from corporates.
The country's largest developer of commercial and industrial rooftop solar projects aims to add 700-800 megawatts each year for the next three years. This will double its operational capacity to over four gigawatts, Managing Director Kuldeep Jain told NDTV Profit in an interview.
The Mumbai-based company has allocated Rs 12,000 crore in capital expenditure to achieve this target over the next three years, Jain said. "Each year, we will spend Rs 4,000 crore, including the equity component."
The company raised $360 million, or Rs 2,952 crore, in equity from Brookfield Asset Management in June 2023. The energy provider currently operates 2 GW and added 500 MW in the year ended March 2024.
There is growing demand for renewable energy from group captive and open access sources, as it is at least 35% cheaper compared with grid-connected power, Jain said. "We're hopeful of capitalising on strong opportunities in the segment, as we focus on corporates and the commercial and industrial segment that provides higher margins."
“Our return on investments on projects is significantly higher at 15% compared with an industry average of 10-11%,” he said, adding the company has 400 corporate clients, of whom 75% are repeat customers.
"Around 85% of our long-term electricity contracts are with 'AA-', 'AAA-' rated companies or multinationals," Jain said.
The average deal size in a group captive project, where customers own a 26% stake, is 20 MW, while the average size per power purchase agreement is only 7-8 MW, he said.
Jain added that Clean Max's timely completion of projects has worked in their favour. “If someone delays a project by six months, the 13-year net present value of 5% lower price is wiped out as other desperate sellers are ready with discounted prices.”
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