Engineering, procurement and construction (EPC) companies in the renewable energy space expect a significant increase in orders from new-age energy projects such as battery energy storage system (BESS), pumped storage projects (PSP) and round the clock (RTC) projects.
Battery storage systems and pumped storage systems are gaining traction as renewable energy sources such as wind and solar are intermittent, meaning they cannot produce power consistently. BESS stores energy from grid or a power plant and releases it when required. PSPs are hydroelectric systems that store energy by pumping water from a lower reservoir to a higher one during periods of low power demand and excess supply.
Sterling & Wilson Renewable Energy (SWREL), a solar EPC and O&M (operational & maintenance) provider, is expecting a jump in orders from BESS projects. It won its first BESS order worth Rs 328 crore in July.
“We have won our first large gigawatt-scale BESS order in July. This is a market that is growing rapidly, and we look ahead to aggressively participate in the growth. We are also evaluating opportunities in wind EPC and hybrid/RTC projects,” said Amit Jain, global CEO, Sterling and Wilson Renewable Energy Group.
SWREL had a total order book of Rs 9,396 crore as of Q1FY25. As of June 2024, the entire order book was made up exclusively of solar EPC projects. It has guided for a Rs 8,000-crore order inflow from third party projects excluding Reliance Industries and Nigeria orders. Around 75% of the orders will be from the country and the rest from the international market.
Resco Global, the EPC arm of Inox Wind, is also witnessing a surge in demand for hybrid/RTC/FDRE projects which combine wind and solar energy with/without storage. “These projects are increasingly being awarded in large scale, given their capabilities to provide round-the-clock green power, reduce intermittency and replace conventional power supplies. We are excited about the potential of both these segments,” said Devansh Jain, executive director, INOXGFL Group.
Resco recently raised Rs 350 crore to foray into specialised offerings such as crane services and hybrid power solutions, which not only complement its existing portfolio, but also open up new revenue streams, he said. “We are continuously exploring adjacent segments within the renewable energy space. Our goal is to evolve into a comprehensive service provider addressing the diverse and changing needs of the renewable energy ecosystem,” Jain said.
The wind energy sector remains a key growth driver, particularly with India’s ambitious targets to add 80 GW of additional wind capacity by 2032, Jain said, adding that Resco Global will handle all the aspects of EPC for Inox Wind, which has a 3-GW order book. In value terms, the order book is around Rs 3,000 crore for Resco, to be executed majorly over the next two years, he said.
“As we look ahead, we are negotiating several large turnkey orders, providing a strong visibility for Resco Global. With strong market traction and incremental orders expected, we are poised for a substantial growth and profitability,” Jain said.
Waree Renewable Technologies, an EPC company of Waree Energies group, is targeting a bidding pipeline of 15.5 GW in FY25 and is bullish about new projects such as PSP.
“Last year, we were at 800 megawatt with regard to the order book position. At present, we are at 2.1 GW. New businesses are being set up in the country and new opportunities such as pumped storage are coming up,” said Dilip Panjwani, chief financial officer at Waree Renewable Technologies, told FE in an interview last month.
The company has a book of almost 500 MW in O&M and its current order book itself has 1 GW of O&M opportunity. When these projects complete in the next 9-12 months, they will be like 2 GW in O&M itself, he said. The company is trying to bag other projects as well.
From: financialexpress
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