Que: Could you elaborate on the key roles Kundan Green Energy is playing in India’s transition from fossil fuels to renewable energy?

Ans: We have built and we continue to build Kundan Green Energy on the principle of doing things differently. This means that we practice what we say, take fast decisive action, constantly re-invest in our business, keep integrating our value chains (so that the sum of our parts is always positive), embrace technology rapidly and consistently up-grade it to the best benchmarks. We challenge ourselves to stretch on every aspect which makes a difference to our business, our people and the planet. At the core of what we do, is deep immersion in every facet of our work. This is reflected in our growth trajectories, the trust of our stakeholders, and the execution excellence we demonstrate at all times. We have distinguished ourselves by stepping beyond fundamental business success attributes of organizational strategy, teams, financial accruals and customers. These fundamentals are core and we adhere to them very seriously, our focus is on more ---- on creating intrinsic value through unique attributes – our demonstrated abilities to raise the bar on execution excellence for example -- we complete and commission hydropower projects in record time spans.

We are engaged in medium and small hydropower projects. This segment has seen clear and sustained growth for us. In both greenfield and brownfield projects we continue to excel. As a young company, we have created a performance led reputation. As we gain scale through planned growth, we do this with a view to acquiring the magnitude necessary for disproportionately significant impact. We are significant, we are growing and we are set to exponentially increase our impact and contributions.

Que: What methods would you recommend for overcoming obstacles like financing, land acquisition and regulatory challenges in the hydropower sector?

Ans: The implementation of sustainable policies around renewable energy will lead investors to consider options such as hydropower. As private investors begin to consider expanding their portfolios to hydropower, it is crucial that substantive and comprehensive guidelines are set in place to build a stable foundation which in return will encourage investors. These sustainable energy policies will reduce risks related to construction, planning, environmental and social issues that hold the potential to hinder and de-rail new hydropower plants. Investing in the necessary facilities to modernise hydropower plants that require maintenance. In some cases hydropower plants are ageing and require upgrades to continue performing at optimal levels. Policies and access to finance must enable this.

Funding & Remuneration Schemes – Currently financial remuneration and prices do not attract many investors to this renewable energy sector as they do not reflect the stability and potential of long-term investments with high initial costs. It will be vital for governments to reflect the sustainable viability of this product. Partnerships of both the private and public sector would reduce risks for stakeholders involved and increase the appeal for private investors to take interest in new hydropower projects. By additionally focusing on the commercialisation of hydropower projects to create revenue certainty, we are likelier to see more investment from the private sector. The states should completely defer the 12 percent free power charged to the hydropower developers as royalty. At least, the free power should be deferred till the loan repayment period.

To plan for holistic hydropower development, it is necessary to carry out integrated river basin-wise studies. It will lead to effective utilization of river water’s potential and improved management of a river’s ecosystem. Since water is a state subject in India, and electricity is on the concurrent list, there is a need for central and state government’s cooperation to actively work towards hydropower promotion. The states’ water-sharing agreements should include hydropower development agenda. A nodal agency/ institution dedicated to hydropower development should be established. The agency should be responsible for all the required clearances. Pumped storage hydropower plants be incentivised for maintaining grid stability through the ancillary services and by acting as a water battery to support grid integration of intermittent renewables such as solar and wind. Such incentives will also promote private sector investment.

The government and private hydropower developers should collaborate with academic/ research institutions to develop indigenous hydropower generating equipments (electrical, mechanical, electronic). Central and state governments should come forward in creating public awareness programs to highlight the importance of hydropower projects. It will address the negative perception of hydropower projects among the public and minimise the social barriers.

Que: In which way is Kundan Green Energy increasing its capacity in the hydropower sector with recent expansions including Okhali and Rellichu projects?

Ans: As a young company, Kundan Green Energy has created a performance led reputation for itself. Our vision is not to be the biggest or the most profitable, it is to be the best, the most admired. As we gain scale through planned growth, we do this with a view to acquiring the magnitude necessary for disproportionately significant impact. This aspect of our business story has been impressive. Our hydropower projects have a commissioned capacity of 104 MW and growing. Between 2017 and now we have 18 commissioned projects across the combined renewable energy spectrum and several in various stages of development. It is with this individuality of business and brand which creates a uniquely different thumbprint, that Kundan Green Energy sees itself in the category of renewable energy. We are significant, we are growing and we are set to exponentially increase our impact and contribution with our exceptional efficiencies and execution excellence.

Que: How do you assess India’s hydropower potential, especially in states such as Uttarakhand, Himachal Pradesh and Sikkim?

Ans: I see a very bright future. With fifth largest hydropower production capacity in the world, India has a total installed capacity of over 51.35 GW. There is still vast potential in the hydro power sector. India has developed only 29 percent of its total hydroelectric potential of 145,320 MW. Nearly 100 gigawatts of electricity potential in India’s rivers is lying untapped. Hydropower projects are crucial to stabilize the grid as India looks to add 175 GW of renewable capacity. I see a continued and faster growth of the renewable energy sector with hydropower as a dominant player. I also see adoption and application of better, de-carbonised, sustainable and re-cyclable building materials which will help us come full circle on green energy.

Que: In the year 2030, India aims to achieve 500 GW of renewable energy capacity meeting 50 percent of its energy demand from renewable sources. How can hydropower help achieve this target?

Ans: India has committed to reduce emissions intensity per unit GDP by 33 to 35 percent below 2005 level by 2030, and achieve 40 percent cumulative electric power installed capacity of non-fossil fuel based energy resources. By 2030, the aim is to achieve 500 GW installed capacity of renewables. India is committed to renewable energy generation capacity of 500 GW and meet 50 percent energy needs through renewable means by 2030. Today, India is one of the few G20 countries on track to achieve targets under the Paris Agreement. Buoyed by the increasing policy support from the Government, the International Energy Agency (IEA) expects the country to add 26,000 MW of hydropower projects by 2030. Climate change and other negative effects of using fossil fuels for power generation along with growing concerns over energy security are driving the expansion of hydropower around the world. The Indian government has taken multiple initiatives and implemented various policies to promote renewable energy generation in the country. In June 2021, India launched the Mission Innovation CleanTech Exchange, a global initiative that will create a whole network of incubators across member countries to accelerate clean energy innovation.

With fifth largest hydropower production capacity in the world India has a total installed capacity of over 51.35 GW. There is still vast potential in the hydro power sector. India has developed only 29 percent of its total hydroelectric potential of 145,320 MW. Nearly 100 GW of electricity potential in India’s rivers is lying untapped because of high tariffs. Hydropower projects are crucial to stabilize the grid as India looks to add 175 GW of renewable capacity. Although initial startup costs may be high, modern large-scale hydropower plants will remain an economically-viable option for developing economies due to the long term benefits it can provide in comparison to its less sustainable counterparts. Government and policymakers will need to prioritise passing legislation and policies that make the towering barriers surrounding hydropower, less intimidating to the private sector in order to attract the investment needed.

Que: With ongoing projects like Rellichu and Myong Chu, what are the key learnings from these developments that will influence your future projects?

Ans: A relatively new player in the renewable energy space, Kundan Green Energy has distinguished itself by stepping beyond the fundamental business success attributes of organisational strategy, teams, financial accruals and customers. While these fundamentals are obviously core and we adhere to them very seriously, our focus is on creating intrinsic value through unique attributes – our demonstrated abilities to raise the bar on execution excellence for example -- we complete and commission hydropower projects in record time spans. Against an industry average of 5-6 years for one project, we take 2-3 years to commission from the ground-up. This is accompanied by other carefully nurtured traits:

Expertise & Innovation: We have consistently demonstrated complete turn-arounds of old, chronically disrupted and stalled projects, bringing them to the status of optimally performing assets.

Excellence: We have distinct competencies in conceptualizing, designing, engineering and executing projects to scale, across diverse geographies. A trait reflected across our sites.

Safety: Committed to best practices, we adhere to QHSE policies and are an ISO 9001 and OHSAS certified company.

Financial Strength: Among our biggest strengths is our robust financial health. Fiscal prudence and discipline make Kundan Green Energy a rare enterprise which has no loans, no liabilities and no debt on any project. We have instituted good governance practices to ensure our business health.

In-house expertise: With a practised belief in internal competencies, we own all our essential equipment and we execute our work ourselves which adds to the optimal use of our resources.

These are our key differentiators. As we develop them further to optimal performance and value, we continue with our focus on distinctiveness through impact.