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OMCs bullish on renewable energy segment

In a bid to reduce carbon footprint and look at avenues beyond the conventional sources of energy, oil marketing companies (OMCs) Indian Oil Corp. Ltd (IOCL), Bharat Petroleum Corp. Ltd (BPCL) and Hindustan Petroleum Corp. Ltd (HPCL) are looking at expanding their renewable energy plans. IOCL, the country’s largest oil marketing company, plans to generate 260 megawatt (MW) of renewable power in the next five years. HPCL, on the other hand, has plans to generate 1,000 MW in the same time period.

“IndianOil has ambitious plans to broaden its energy basket with alternative energy options. The corporation envisages setting up 260 MW of renewable energy (wind and solar) over the next five years,” IOCL said in its annual report for 2015-16.IOCL has installed wind power systems totaling 69.3 MW in Gujarat and Andhra Pradesh. A 5 MW grid-connected solar power plant at Rawra, Rajasthan, is also in operation since 2012.

“We are bullish on renewable energy. Though we have an ambitious target of reaching 1,000 MW in five years, we are planning to install capacities picking up one state at a time,” said a senior HPCL official, on the condition of anonymity.The renewable energy road, however, is not an easy one for the OMCs. Availability of land and infrastructure are the biggest issues for those who wish to enter the renewable segment say industry officials.