The comprehensive reforms initiated by the Government of India across various segments of the Power Sector are backed by a renewed emphasis on private sector participation in Power. This offers significant growth opportunities for a company like POM Hydro Energy Limited, especially in view of our hands-on experience in setting up and operating plants in Himachal Pradesh and Haryana.
POM Hydro Energy Limited is in a position to leverage its expertise, experience and capabilities with a view to enlarging its footprint in power generation, transmission and distribution. Accordingly, the company has drawn up expansion plans for enhancing its capacity, thereby creating value for its stakeholders by focussing on business opportunities that could offer above average market returns. These expansion plans encompass a three-pronged strategy:
POM Hydro Energy Limited has started exploring acquisition opportunities for hydropower projects that are either operational or nearing completion. Ideally, such acquisitions will be based on long-term PPA. The company is also seeking to acquire projects with a low capital outlay per MW and short gestation periods. This would reduce the execution risk and also reduce the payback period significantly.
Enhancement of Existing Capacity
The capacity enhancement proposals for the company’s Khukhni and Mussapur plants by 0.7 MW have already been approved. This capacity enhancement is on account of increased discharge because of the augmentation of the canal. This form of expansion involves lower capital outlay since it requires only the installation of plant and machinery along with minor civil engineering work.
The company is also exploring the possibility of expanding its capacities in canal based projects since these typically have less uncertainties, high PLF, low execution risk and high profitability.
Canal-Top & Canal Bank Solar Power Projects
POM Hydro Energy Limited is also considering the establishment of canal-top and canal bank solar power projects located at the sites of Khukni and Mussapur projects. Such projects will result in significant synergies along with cost savings on account of shared infrastructure and manpower.
Preliminary studies in this regard have already been conducted and the Pre-Feasibility Reports have been filed with the Haryana Renewable Energy Development Agency (HAREDA) for approval.