Interview | Terje Pilskog, EVP, Scatec: ‘Retrospective tariff revisions are not investor-friendly’

Extra mature tasks will certainly be extra engaging. Nevertheless, we’re additionally open to bidding for greenfield tasks and develop capacities on our personal.

Norwegian renewables participant Scatec has just lately signed an settlement with home agency Acme Photo voltaic for a 50% stake within the latter’s upcoming 900 megawatt (MW) energy era belongings in Rajasthan. Scatec expects India “to be a key market within the years to return”. Terje Pilskog, government vice chairman, venture growth photo voltaic and wind, Scatec, tells Anupam Chatterjee how the corporate is planning to consolidate its presence within the nation. Edited excerpts.

What sort of belongings are you in India?

Globally, we need to add 12 gigawatt (GW) of renewable power belongings by the top of 2025, and out of that, a number of GWs are anticipated to be in India. We are going to want taking up tasks with quick building durations and have secured energy buy agreements (PPAs) with discoms. Extra mature tasks will certainly be extra engaging. Nevertheless, we’re additionally open to bidding for greenfield tasks and develop capacities on our personal.

Why did Scatec select India to develop its base?

The nation is concentrating on a big development in renewable power capability by 2030 and is a key development marketplace for renewables. We’re positioning for future tenders inside photo voltaic, wind and hybrids. We may also look into the prospects of constructing hydro energy tasks within the nation. We see alternatives to supply varied large-scale options throughout applied sciences in India, each based mostly on federal and state tenders, in addition to by coming into into direct PPAs with company off-takers. World buyers search for predictability, and coverage reforms ought to purpose in the direction of incentivising the trade.

A number of states now need to revise photo voltaic and wind tariffs found earlier with costs falling in current auctions. What do you must say to that?

Retrospective tariff revisions are undoubtedly not investor-friendly and disrupt the calculations builders make whereas bidding for the venture and deploying capital. Nevertheless, that is one thing that’s sadly occurring all around the world. One thing related occurred in Spain. One could need to take it into consideration as one of many dangers. We’re assured that we can handle the scenario if the necessity arises. If such developments happen, we are going to legally problem the selections and alter our strategy to venture planning.

Are you additionally seeking to construct storage-plus renewable-energy capacities?

Scatec has just lately been awarded a 540 MW photo voltaic and 225 MW/1,140 MWh battery storage venture in South Africa, which is likely one of the largest of its sort on this planet. Now we have proven the potential of constructing such tasks, and if the circumstances are proper, we will take up related tasks in India as properly. Nevertheless, we need to stick with growing tasks and as of now haven’t any plans of constructing storage or photo voltaic gear manufacturing capacities.