PTC India Ltd. is banking on energy storage systems, power purchase agreements and the electricity futures market for the power trading solutions provider's growth in the near future, according to Chairperson Manoj Jhawar.
“Number one, the draft guidelines issued by the Central Electricity Regulatory Commission on mutual power purchase agreements," the managing director said. "Number two, the energy storage solutions are likely to become a big business because there is a huge demand."
"Number three is the derivative market, which has recently been opened up to electricity futures," he said during a conversation with NDTV Profit on Monday, outlining the key factors to support the company's growth in the near future.
Jhawar also expressed optimism over enhancing the earnings from the consulting division, which currently contributes Rs 50 crore to Rs 60 crore to annual revenues. "We are looking at growing this segment because there are a lot of consulting opportunities, which are emerging."
The CMD also elaborated on the potential of the energy storage business. He noted the stark price disparity on power exchanges: Rs 2 per unit during the day and up to Rs 10 per unit during peak hours.
"A power trader is expected to buy when it is cheap and sell when it is costly. That means you need grid-scale storage solutions, so we are exploring the opportunities in the energy storage space," he said.
The top executive acknowledged the pressure on short- and medium-term contracts where traders are restricted from long-term deals except in renewables. To maintain margins, PTC India plans to build a portfolio of owned assets, including energy storage and renewable energy solutions, to offer tailored resolutions to utilities.
The company is in early discussions about green hydrogen initiatives in the ports sector. He remarked that PTC India remains a leader in the power trading sector, commanding a 31% market share in its core trading business.
"We are confident that we will be able to maintain this market share because of our balance sheet, which is very strong and we have very deep-rooted industry connections, so we know how this market operates," he said.
Watch
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
