Radiance Renewables To Invest $150 Million For Hybrid Wind, Solar Projects: CEO

Radiance Renewables Pvt. is planning to invest $150 million or approximately Rs 1,245 crore, to expand its operating capacity and invest in hybrid wind-solar projects over the next three years.

The solar power producer, owned and managed by India's largest climate fund, Eversource Capital, is planning to invest the funds to expand its operational power capacity in Karnataka, Tamil Nadu, Maharashtra and Rajasthan, Chief Executive Officer Manikkan Sangameswaran said on Wednesday.

The investment for ramping up the generation capacity to 2 gigawatts is not just for ground-mounted solar projects but also for hybrid wind-solar projects both on intra-state and inter-state transmission systems, Sangameswaran told NDTV Profit in an interview.

Sangameswaran pointed out that the governments' focus on promoting wind-solar hybrid projects with the need to stabilise the grid for higher renewable-energy penetration and to meet customer requirements of higher displacement of fossil-fuel power with renewable energy encouraged the company to add wind capacity.

A round-the-clock hybrid solution helps to reduce variability in power generation. Solar generation is limited to daytime and has seasonal variation due to monsoons and winters. Wind generation has significant climate variability during the year, with the best generation in five to six months of the year that complements the solar generation, according to Sangameswaran. "Having a hybrid project will help us improve capacity utilisation to 60% from 23% at present with solar alone."

The dollar-denominated equity funds for the purpose of expansion will be raised in the market as soon as the process is underway. Radiance is attracting significant investor interest due to its leading position in the commercial and industrial market segments and its high growth trajectory, he said.

The fundraising process is expected to be completed in calendar year 2024. Radiance's customer-centric business model targets high-quality, high consuming and underserved C&I customers and offers a clear green transition path for corporate India, according to the CEO.

Need Clarity On ALMM For Project Completion

The company is hopeful of getting clarity on the approved list of modules and manufacturers that was to be reimposed on April 1, but it was put on abeyance on Feb. 15 till further orders.

Although the Union government had not given any reason for the decision, Sangameswaran pointed out that there was a lack of clarity on the ALMM exemption with regard to projects under commissioning that cannot meet the commissioning deadline of March 31 to qualify as projects that will be exempted from the ALMM.

"What will happen to those projects where the equipment is received a day before March 31? Will projects getting commissioned after March 31 be exempt from ALMM if they had received their equipment before March 31?" Sangameswaran asked.

"We are hopeful that the order addressing the matter will be out soon," he said.