Hong Kong’s CLP to diversify, expand in India

Bloomberg

Hong Kong’s largest power utility CLP Holdings Ltd. is scouting for more renewable power projects in India at a time when conventional generators are coping with stranded projects and under utilisation. CLP India Pvt. is eyeing run-of-the-river hydro power projects, solar and wind capacities as well as efficient coal-based power generation units located near coal mines, which helps to lower costs, according to company executives.
“We have a global climate commitment and our ability to increase emissions is pretty limited,” said Amarthaluru Subba Rao, executive director for finance and strategy at CLP India. “So we would keep looking at opportunities within our policy framework.”
CLP India’s focus on cleaner generation reflects the parent’s commitment to reduce emissions as well as an increasingly competitive power market in India. A rapid decline in renewable power prices has made clean energy more attractive to state retailers looking to lower costs. CLP Holdings’ Indian unit accounted for less than 5 percent of its revenues in 2016, according to data compiled by Bloomberg.
The local unit is looking to buy hydro power projects of 50-200 megawatts in size, that are either completed or nearing completion as it wouldn’t like to build one itself, said Naveen Munjal, commercial director at CLP India.
The company is also planning to enter the electricity transmission business. Last month, it bid for a 200 kilometre power-transmission project connecting the northern and western grids in India, Munjal said.
After adding generation capacity at a rapid pace over the past few years, India is focussing on transmission and distribution projects to ensure electricity reaches users. An added attraction is safety of revenue, as the federal government ensures payment protection for its transmission projects.