Que: As one of the leaders in merchant power generation, how does OPG ensure consistent and reliable power supply amid fluctuating market demands?

Ans: At OPG, reliability of power supply is one of our core principles. In the merchant power space, where demand ebbs and flows with everything from industrial growth to seasonal temperature spikes, consistency can’t be left to chance. We've built our operations around the ability to respond fast, stay flexible, and deliver power when and where it’s needed most.

Our Gummidipoondi plant, for instance, is equipped to run on a variety of coal, allowing us to pivot quickly based on market shifts. That flexibility proved invaluable during the summer of 2024, when India recorded an unprecedented surge in peak power demand driven by extended heatwaves and a rapidly growing consumer base.

We also maintain a balanced off-take strategy, blending long-term agreements with short-term exchanges and open access sales. This model gives us both stability and the room to capture upside during demand spikes. Our plant load factor of 69.2 percent last year speaks to the strength of that approach.

Looking ahead, we’re integrating advanced forecasting tools to sharpen our responsiveness. In this sector, the difference between reacting and anticipating often defines leadership. At OPG, we’re committed to staying one step ahead—reliable, resilient, and ready.

Que: What are some of the most impactful innovations the company has implemented in the sector?

Ans: When we talk about innovation, it’s less about big buzzwords and more about solving practical problems—how do we run more efficiently, how do we reduce our environmental footprint, and how do we stay ahead of regulatory changes. That’s where most of our thinking and investments have gone over the past year.

We have taken steps to ensure that we are in line with all the emission standards. Our boilers are retrofitted to keep emissions in check. At the same time, we’re starting to build in renewables in a way that makes sense for our operating model. We’re setting up a 3 MW solar installation within our thermal facility to reduce internal power use and cut emissions. We’re also piloting bamboo as a biomass blend to cut coal usage and sequester more carbon.

None of this is about chasing the next big thing. It’s about making targeted moves that support both operational performance and India’s broader energy transition.

Que: With India's growing focus on renewable energy, how is OPG balancing its traditional power generation portfolio with sustainable energy solutions?

Ans: India’s energy narrative is evolving rapidly, with renewables at the center of the policy discourse. We view this not as a disruption, but as a natural progression and an opportunity to complement, not compete with, our thermal capabilities.

Our strategy is twofold. First, we are driving operational excellence in thermal by investing in sustainable technologies. From low-emission fuels to high-efficiency turbines and stringent environmental compliance, our goal is to deliver reliable power while steadily shrinking our carbon footprint. Initiatives like solar lighting across facilities and rainwater harvesting are embedded in this ethos.

Second, we are actively developing a renewable portfolio. Our upcoming solar installation is a step towards hybridised generation—a model that aligns well with India’s base-load needs and renewable intermittency. We’re also exploring biofuels and battery storage as part of our future energy mix.

The Indian power sector will likely remain a hybrid landscape for the foreseeable future. As thermal continues to anchor grid stability, our role is to evolve responsibly leveraging our existing strengths while integrating green technologies.

Que: What role do you see advanced grid technologies and energy storage playing in the future of power generation in India?

Ans: As India moves towards its clean energy goals, advanced grid solutions and scalable energy storage infrastructure will enhance reliability and unlock new opportunities for innovation and private sector participation. Advanced grid technologies and energy storage are no longer optional, they are foundational to India’s energy future. As the country scales up its renewable energy capacity, the need for grid stability, intermittency, and efficient power evacuation will become critical. That’s where these technologies step in.

At the grid level, digital substations, STATCOMs, and AI-powered fault detection systems are already enabling smarter, faster decision-making. On the storage front, energy storage systems will serve as a cornerstone for managing peak demand, maintaining frequency stability, and ensuring uninterrupted power supply. With the increasing share of renewables in the energy mix, storage solutions ranging from battery energy storage systems to pumped hydro are essential for balancing supply and demand in real time. For a company like ours, these advancements support more resilient operations and mitigate delivery risk, ultimately protecting shareholder value.

Que: What policy measures would you like to see to support private power generators in enhancing efficiency and sustainability?

Ans: The transition to a cleaner, more efficient power sector depends heavily on how effectively policy can enable private innovation. A robust policy framework must support private developers in adopting advanced technologies and enhancing operational efficiency. Key enablers include incentivising green energy projects through tax breaks, subsidies, and green energy certificates to offset upfront costs; modernising grid infrastructure by developing Green Energy Corridors, integrating smart grid technologies, and advancing energy storage; streamlining regulatory processes with single-window clearances to accelerate project timelines; and encouraging innovation through targeted grants and incentives for R&D in energy efficiency, emission reduction, and smart grid solutions.

Que: Given the growing demand for industrial power, what trends do you foresee in power purchase agreements (PPAs) and energy pricing?

Ans: With the industrial sector witnessing accelerated growth, we’re noticing a clear shift toward long-term power purchase agreements (PPAs) that ensure price stability, supply reliability, and sustainability. One of the major trends I foresee is the increasing demand for long-term price certainty. PPAs provide fixed pricing over extended periods, offering industries stability against the volatility of energy markets and enabling predictable operational costs. Coupled with strong government support and continuous technological advancements, we are seeing enhanced efficiency and cost reductions in the energy sector. This makes PPAs not only more accessible but also a strategic tool for industries aiming to balance cost, reliability, and sustainability.

At OPG Power Generation, we are committed to leveraging these trends to deliver innovative and sustainable energy solutions. Our group captive model is built around these principles of prioritising long-term reliability over speculative trading. By integrating renewable energy sources into our PPA offerings and utilising digital technologies to optimise energy supply, we aim to drive value for our customers and stakeholders while contributing to a more sustainable energy future.

Que: Are there any upcoming strategic partnerships or technological collaborations in the pipeline?

Ans: We are poised to capitalise on India’s growing energy demands and exploring new growth opportunities in energy transition. We are actively pursuing partnerships and joint ventures that support India's energy transition and align with our long-term ESG objectives. Our focus is on scalable, clean energy solutions that enhance sustainability while delivering operational efficiencies and value to stakeholders.

In 2025, we plan to commission a 3 MW solar installation at our Chennai Thermal Plant. This project alone is expected to reduce auxiliary power consumption by 4.51 million units and offset approximately 4,798 tons of carbon emissions annually. We’ve also begun implementing solar lighting across all our facilities, reinforcing our commitment to carbon reduction and resource efficiency.