Onix Renewable to set up 7 GW energy plants

Onix Renewable plans to invest Rs 25,000 crore to develop 7 GW of renewable energy capacity and 5 GW of solar module and cell production within three years, aiming for 10 GW by 2030.

Onix Renewable plans to spend nearly Rs 25,000 crore to build 7 gigawatt renewable energy capacity and 5 GW solar module and cell capacities in the next three years.

By 2030, the company will build a renewable energy portfolio of 10 GW and looks to invest Rs 30,000 crore, its chief operating officer Hardik Adhiya said. He said that about 80% of the projects will be based on solar and the rest will include wind. The company’s plans align with the country’s target to build a renewable energy capacity of 500 GW by 2030. Onix’s larger peers such as Adani Green, ReNew and Tata Power have already built large capacities in green energy. For instance, Adani Green recently said it crossed an operational capacity of 13 GW in green energy.

Onix will float an IPO to raise about Rs 1,000 crore by October this year and tap private investors to fund the projects, Adhiya said, adding they will also raise debt from financial institutions.

The company is also looking to invest another Rs 2,500 crore in building 10 GW of solar modules and cells in the next five years, Adhiya said. To begin with, the company will build 2,400 MW of module plants in phases. It plans to start production by May this year. It plans to build 1,200 MW cell plants in Gujarat with an investment of Rs 700 crore and start production by December. Currently, it has a capacity of 100 MW.

Adhiya said land acquisition has been a challenge in many states and that timely project financing has become an issue as well. 

“In a total timeline of 12 months to implement a project, it takes four to six months to get financing done. We just get five-to-six months for execution of a project including getting inventory, installation and so on,” he said.

The company is building power plants under PM Kusum Yojana in Gujarat and Maharashtra. which will be commissioned in June and December, respectively. The company aims to produce 3,000 MW by 2026 under this.

The company is also looking to tie up with a German company for electrolyser manufacturing where it will invest Rs 650 crore. “We want to manufacture green hydrogen and green ammonia as well,” he said.

The company is looking to the EV charging infrastructure in the future, he added.