Commercial and Industrial customers account for 50% of India’s energy demand. As prices of renewables have declined to below grid tariffs – it makes economic sense for them to go green. Over the last few years, almost all large corporations in India have considered deploying solar energy in their premises and off late have shown interest in sourcing a higher share of electricity from renewables. However, the overall share of renewables in the captive power market is still small – accounting for only 2% of the overall installed capacity (rest being coal) in 2018. As prices for storage decline, the need for EV increases, and Indian growth unfold – there is a substantial upside to the business.
The major barrier to uninhibited growth of the C&I market comes from already seeded investments in DISCOM infrastructure, the unavailability of financing to a large section of potential customers, and non-clarity on how the market risks for electricity will pan out. It is expected that PPA durations will get lower and more contracts will be exposed to market pricing even during the times of contracted volumes.
Hence, investors and players need to be cautious in their planning and excel in execution. MEC+ assists companies to grow profitability in this sector in India and Southeast Asia. We assist companies in identifying what capabilities are needed to succeed and differentiate in the market. We also support partner identification and the selection and due-diligence of potential platform or bolt-on acquisitions.
Our offerings in India include:
GO TO MARKET PLANNING
- Assessing the opportunities wrt. business model, partnerships, and fit to client org
- Support for facilitating investment pitches and providing PMO support
- Creating market transparency and assessing value chain positions and business model
- Partnerships and business case
- Analyzing organic growth vs inorganic growth options vs partnership
- Permitting, policy, grid risks, and impact on IRR
- PPA design/risks and planning
- Pipeline valuations
TARGET IDENTIFICATION AND DUE DILIGENCE
- Identifying the right targets using the selectron criteria developed to filter the target
- Analyzing target’s positioning, assumptions, and sustainability of business model
- Identifying the risks and threat related to the transaction
Strategic guidance to enter Indian C&I Solar market
Re-shaping solar open access strategy in India
“MEC+ has an in-depth understanding of business drivers and experience in challenges faced by players like us who are foreigners. It was an intensive and insightful experience working with you.”
Leading Energy Solutions Company
“MEC+ worked almost like an extended team with a focus on transferring the knowledge to our people. I really enjoyed the workshops that were conducted by the team.”