Expects ‘meaningful’ Indian ownership in next five years; to double power portfolio through renewable energy
CLP India — which runs 3,150 megawatt (MW) power generation assets in the country — has rebranded itself as Apraava Energy, as the company aims to double the size of business in the next four years by adding non-polluting electricity generation capacity to its portfolio.
Apraava Energy, currently owned jointly by the Hong Kong-based CLP Group and Canada-based investment group CDPQ, will also seek to encourage participation of local shareholders in the medium term.
“The rebranding process will also include the change in shareholding structure, wherein Indian shareholders will have meaningful ownership in the company in the next five years, either through an IPO or any other means,” Rajiv Ranjan Mishra, managing director of Apraava Energy told FE. “We will invest only in non-carbon, which can include renewable energy, battery storage, transmission or consumer-facing power distribution business,” Mishra added while elaborating on the company’s future plans.
Apraava Energy’s current power generation portfolio consists of a 1,320 MW coal-fired power plant in Jhajjar, Haryana, and 924 MW of wind and 250 MW of solar energy projects across seven states. CLP Group started its India operations by acquiring a stake in the 655 MW gas-based Paguthan plant in Gujarat in 2002, which ceased operations after the expiry of its previous power purchase agreement in December 2018.
The company is currently evaluating alternative business options for the plant, including potentially participating in bids to supply ‘round-the-clock’ power using a combination of renewables and thermal energy, and the possible sale of the asset.
“Acquisitions will likely play a key role in our expansion plans,” Mishra stated. The company had acquired 150 MW of solar plants in March 2019 from Suzlon Energy, and 80 MW of renewable energy assets from Mahindra Renewables in March and April, 2020.
CLP India had also acquired Satpura Transco, an intrastate transmission project spread over 240 km in Madhya Pradesh, from Kalpataru Power Transmission in 2019. The acquisition of the Kohima-Mariani interstate power transmission asset, spanning three north-eastern states, is also expected to be completed soon.
Apraava Energy plans to further expand its power transmission business and pursue possibilities in electricity distribution. “As the power sector gets privatised, the company will proactively focus on foraying into low-carbon, customer-focused energy businesses,” it said in a statement. “In recent years, the Apraava Energy has steadily grown its low-carbon portfolio, and it now has a powerful vision for the role it intends to play in India’s energy sector across generation, transmission and distribution,” Emmanuel Jaclot, executive vice-president and head of infrastructure at CDPQ, said.
https://www.financialexpress.com/industry/clp-india-rebrands-as-apraava-energy/2357461/
