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South East Asia, Africa and the Middle East are the Target of Clean Energy Companies Looking to Hedge their Risk


Clean energy firms have begun taking their expansion drive overseas, they are beginning to explore ways to spread their risks and increase their business outside the shores of India.
 
Top energy companies like Hero Future Energies are looking for opportunities beyond our shores, their search has taken them beyond India. SunSource Energy a leading rooftop solar power developer derives 33 per cent of its business from projects overseas, while another major player CleanMax Solar recently ventured into the Abu Dhabi markets. Other companies like Gensol has outlets in several countries outside India.
 
Rahul Munjal, the managing director at Hero Future Energy believes that a quarter of their business should be sourced from outside the shores of the country. He went on further to point out that the focus now should be to explore foreign markets since they have been able to reach an energy generation capacity of 1GW in India.
 
According to energy Analysts, Africa, the Middle East and Southeast Asia are viable propositions for Clean Energy developers in India. This is because these regions considered to be gold mines are still untapped and relatively new to the concept of clean energy.
 
Vinay Rustagi, the managing director at Bridge to India is of the opinion that a lot of companies are hesitant to move into established countries like US and Japan as it would be very difficult to break in due to numerous factors like regulations and contractual processes. Hence the shift of focus to developing markets.
 
Founder of Gensol, Anmol Singh Jaggi thinks moving overseas is a way for his company to hedge risk across geographical boundaries since they already own a large share of the Indian market. This is due to the fact that changes in contractual terms with discom could affect the value of the company negatively and this could be catastrophic for the company. As a result, he feels the need to spread their tentacle to other markets in other to increase their stability. This strategy helped Gensol to grow at a rate of about 300% year on year and also establish its presence in about nine other countries apart from India.  
 
Experts have observed that although expanding overseas offers a lot of opportunity, it still has its disadvantages and risk attached. For example, getting clearance for a project could be a difficult obstacle to surmount. Kuldeep Jain, managing director of CleanMax solar said even though the profit margins are higher overseas than in India, the risk and cost of operations are also relatively high as well.
 
SunSource energy is looking to leverage on its current international operations by increasing the amount of business coming into company from overseas from about 35-40% to about 50%.
 
The president of SunSoure Energy, Mr. Nandan believes creating a niche that is peculiar to the market needs helps to boast the company’s returns. This approach keeps his team on their toes as they are constantly thinking of ways to influence the markets in a very unique manner.