The financial year 2022-23 marked a significant shift and adaptation to a new normal as pandemic-induced restrictions were lifted across the country. The rapid economic rebound outpaced energy supply and resulted in higher energy prices. This rising demand across countries, coupled with the breaking out of the Russia-Ukraine conflict, resulted into a global energy crisis. The government, however, continued to introduce supportive policies to raise the share of renewable energy in India’s energy mix, making way for more investments in renewable energy generation.
At Green Infra Wind Energy Limited (GIWEL), we continued to play our part in meeting the country’s growing energy demands with sustainable solutions. Firmly aligned with India’s pursuit of energy independence by 2047 and fulfilling the Net Zero pledge by 2070, we are proactively undertaking measures to build a sustainable energy ecosystem.
Investments in renewable energy witnessed steady, cautious, and continued growth. Along with the policy interventions, such as the new wind policy, local supply chains for modules, turbines, and transmission related components continued to be strengthened to create an optimum balance between demand and supply.
The trust that our shareholders and other stakeholders have reposed in us continue to be our core guiding principle. It has empowered us to develop a value accretive business, enabled us to overcome the hurdles and fortify our financial position. We are pleased to report that FY 2022- 23 signifies another year of steadfast performance amidst a challenging economic landscape. We recorded a PAT of INR 2,817 Mn, and our EBITDA reached INR 14,552 Mn (an increase of 12% compared to the previous year).
India’s ambitious energy transition plan to attain 500GW of non-fossil based energy capacity by 2030 has improved the potential for harnessing green energy. With universal access to electricity and increased usage of electricity for industrial as well as domestic consumption, the demand for power continues to increase across the country.
In FY23, India’s power consumption saw its highest ever year-on-year growth of 9.6% reaching 1512 BU, compared to 1380 BU in FY22. Going forward, demand is expected to remain high and is estimated to reach 1908 BU by FY27 and 2474 BU by FY32. To support the demand surge, substantial efforts have been made to strengthen power generation capacity and improve transmission & distribution infrastructure. Backed by rapid technological advancements and continued government support, the total generation capacity has reached 416 GW (including 125GW of renewables), as of March 2023, with the private sector contributing nearly 51% of the total mix.
Large-scale renewable projects, such as solar parks and wind farms, have strengthened the renewable energy sector and are anticipated to reduce the dependence on fossil fuel. Green Hydrogen, a key player in the renewable shift, also offers potential for energy storage, clean industry, and sustainable transport. The National Green Hydrogen Mission, initiated in January 2022, aims to position India as a global Green Hydrogen leader. This will enhance self-reliance, exports, and economic growth, while reducing fossil fuel dependence.
Among the government’s initiatives, notification of the ‘Late Payment Surcharge Rules’ was crucial to address the perennial need for enforcing payment security mechanisms for power procurement and payment of outstanding dues.
To increase renewable energy demand, key measures such as higher Renewable Purchase Obligations (RPO) and the introduction of Renewable Generation Obligation (RGO) for coal/lignite-based plants commissioned after April 1, 2023, were introduced. Besides, the Green Open Access Rules, 2022 made the procedure for availing open access for renewable energy projects simpler. In addition, it reduced the open access limit from 1 MW to 100 kW, enabling smaller consumers to purchase renewable energy.
The successful acquisition of Vector Green Assets, which includes 583MW (519MW operational and 64MW under construction), marked a significant achievement during FY 2022-23. The smooth integration was a significant step to enhance our solar capabilities, and effectively balance our portfolio.
During this period, we embarked on several greenfield and self-developed renewable energy projects which would supply energy directly to Commercial & Industrial (C&I) consumers. Some of these projects are already operational, demonstrating our competence and capability to support the industry’s carbon neutrality goals and assist the green momentum. The progress and partial commissioning of our Ottapidaram wind project in Tamil Nadu, and Ervadi and Gangawati solar projects in Tamil Nadu and Karnataka, respectively, which are being implemented under the self development model, underline our strong execution capabilities.
Additionally, the pre-feed work for the 50 MW wind PPA* in Maharashtra that will provide Railway Energy Management Co. Ltd. with clean energy is progressing well. During the year, we also finalised an EPC contract for the 180MW SECI XI project. Our high growth trajectory for the fiscal year 2022–2023 was ably matched by a strong pipeline of projects based on winning bids and our foresight in carefully chosen land purchases.
Our deep engineering and project management capabilities helped us install some of the largest wind turbines in the region. During the year, the successful completion of blade pitch cylinder pressure plate replacement at the SECI-3 site involved de-erecting of a single 60m length blade using a cutting-edge crane less technology, a testament to our teams’ ingenuity and technical innovation.
Our deep engineering and project management capabilities helped us install some of the largest wind turbines in the region. During the year, the successful completion of blade pitch cylinder pressure plate replacement at the SECI-3 site involved de-erecting of a single 60m length blade using a cutting-edge crane less technology, a testament to our teams’ ingenuity and technical innovation.
While continuing to focus on profitability and our track record of delivering projects within fixed timelines and budgeted costs, we are also deepening our digital capabilities through Virtual Brain Renewables (VBR) and digital PTW**, for managing both solar and wind fleets. This will further bolster our self-O&M*** and EPC capabilities. Alongside growing our national footprint and operational capabilities over the past twelve months, we have continued to strengthen our Engineering, Procurement, and Execution teams by upskilling our people and investing in new talent.
Our deep engineering and project management capabilities helped us install some of the largest wind turbines in the region. During the year, the successful completion of blade pitch cylinder pressure plate replacement at the SECI-3 site involved de-erecting of a single 60m length blade using a cutting-edge crane less technology, a testament to our teams’ ingenuity and technical innovation.
Despite challenges in the power sales market, GIWEL consistently maintained an average Plant Load Factor (PLF) of 24.7% and delivered positive PAT results. It has also resulted in the organic growth of our operational as well as under construction portfolio. Strategic acquisitions have also played a decisive role in strengthening our capabilities.
While continuing to focus on profitability and our track record of delivering projects within fixed timelines and budgeted costs, we are also deepening our digital capabilities through Virtual Brain Renewables (VBR) and digital PTW**, for managing both solar and wind fleets. This will further bolster our self-O&M*** and EPC capabilities. Alongside growing our national footprint and operational capabilities over the past twelve months, we have continued to strengthen our Engineering, Procurement, and Execution teams by upskilling our people and investing in new talent.
Our commitment to upholding the highest standards of Health, Safety, Security, and Environment (HSSE) within the organisation has enhanced performance and yielded significant results. Our sites have seen tangible improvements through the promotion of safe behaviour, driving positive outcomes for our people. As we continue to increase the number of assets and projects, we are closely monitoring safety, governance, and operational parameters. It has also enabled us to foster a safety culture that is focused on achieving ‘Zero Harm’. We are delighted to share that the British Safety Council has once again recognised our initiatives with the Safety (Distinction) Award 2023. Additionally, we have been honoured with two Social Impact Awards, in recognition of our outstanding performance in the field of corporate social responsibility (CSR) and sustainability.
India’s power sector is poised to play a critical role in the country’s economic development and contribute to its energy transition towards a cleaner and greener future. Guided by the global mega trends of green fuel adoption, decarbonisation and digitisation, our commitment to sustainable growth remains unwavering.
We also continue to prioritise the growth of our wind as well as solar portfolio through bids with strong intermediaries like SECI. Besides, the waiving of interstate transmission system (ISTS) charges for commercial and industrial (C&I) customers have translated into attractive tariffs for consumers procuring power from ISTS-connected solar projects. Similarly, round-the-clock (RTC) tenders for effective deployment of renewable energy is also gaining ground within the country. These developments are improving prospects for green energy producers, including us. We will continue to leverage these opportunities, as well as explore new arenas of future growth through emerging alternatives, such as hydrogen.
At the same time, we are selectively pursuing mergers and acquisitions to broaden our portfolio and strengthen internal capabilities to venture into regional as well as global markets. Carrying forward a strong growth momentum and our cutting-edge digital capabilities to ensure superior asset productivity, we are aiming to strengthen our renewable portfolio and contribute to the energy transition roadmap of India. We are a leading wind energy player, with a decisive focus on green manufacturing and possessing the largest self-O&M capability. We are well-positioned and committed to significantly contribute to a cleaner and sustainable future.
Aligned to our consistent emphasis on achieving holistic value creation for our stakeholders, we are determined to add more renewable capacity. We also consider it our responsibility to make a difference to lives, promote a circular economy, act with responsibility, and follow ethical standards of operation to create enduring value for society at large.
We wish to extend our heartfelt appreciation to all our team members for their unwavering dedication and resilience. We also express our gratitude towards our stakeholders for their confidence in our capabilities. Also, we are deeply grateful to our Board of Directors and our promoters for their steadfast commitment, invaluable guidance, and support in executing the strategy we have envisioned for GIWEL.
Thank you for your continued support.
Chairman
Managing Director
