Greenko owns and operates clean energy projects and as a responsible corporate, the Group business is driven towards addressing the challenge of climate change. In our operations we endeavour to integrate biodiversity and environmental protection measures in our decision making process.
We as a growing Nation are straddled with challenges, however two issues that are on top of the Government agenda are
Renewable energy sector in India is uniquely positioned to enable the local economy to address both these challenges. India's Nationally Determined Contributions as per the submission to COP Paris Summit include to
It is evident from these commitments that India's renewable energy sector is expected to play a key role and recent initiatives by the Government of India, such as the Smart Cities Mission and the announcement of ambitious renewable energy targets present significant opportunities for future growth.
Greenko Group is driven towards contributing to the National issues and to ensure that Greenko's activities respect, promote and advance internationally recognized environmental principles & commitments, Greenko has put in place Greenko Integrated Management Systems (GIMS) and corporate EHS functions. The objective is to establish Greenko as the most admired Group in Indian Energy Sector by demonstrating and complying with International standards. Greenko Group strongly advocates precautionary measures to be carried out throughout the project life - from pre-construction, construction and operations. For the purpose of monitoring we have put in Environmental management system and got few sites certified under ISO 14001:2015 standard for "Operation and Maintenance" activities.
Moreover, Greenko has established Environment and Social Management System (ESMS) as per the requirements of IFC performance standards.
The ESMS includes the following strategic plans:
The details regarding the safety aspects have been covered in the 'Social' chapter of this report.
Sustainability is at the core of our business strategy to provide for our customers' growing energy demands. In our operation, we achieve this by maintaining high levels of energy efficiency for our power generating stations and increasing our renewable portfolio through a mix of Greenfield growth and acquisitions. Over the next few years, we will focus on continuing our energy efficiency initiatives, modernizing our intervention strategies and implementing new demand response measures.
By ensuring high levels of average PLF (Plant Load Factor) and plant availability we are able to cater to the growing load in an optimum manner. The chart below depicts the PLF and the percentage availability of our six plants considered in the reporting boundary.
Some of the common energy efficiency initiatives/ programs across our project sites include:
The global warming contributes to and accelerates, aggravates the climate change impacts. Thus, as responsible businesses, it is desirable to monitor and make efforts to reduce the GHG emissions from business operations. The global community has agreed on limiting the global temperature rise within 1.5-2°C compared to pre-industrial temperatures. Traditionally, economic development has been closely correlated to a higher energy consumption and therefore the increase in GHG emissions.
In 2008, the Government of India released 'India's National Action Plan on Climate Change'. Through this, India has identified specific sectors for the GHG emission mitigation. In 2014, the 'Expert Group on Low Carbon Strategies for Inclusive Growth' under the Planning Commission has also published pathway to reduce the emission intensity of country's GDP by 20 to 25 percent, over 2005 levels, by 2020. India's Intended Nationally Determined Contributions (INDC) details the actions towards the voluntary goal of reducing the emissions intensity of its GDP by 20-25%, over 2005 levels, by 2020. The emission intensity of India's GDP has decreased by 12% between 2005 and 2010. United Nations Environment Programe (UNEP) in its Emission Gap Report 2014 has recognized India as one of the countries on course to achieving its voluntary goal. This achievement is mainly due to aggressive Renewable Power generation during 2005-2010. It is essential that the country has to continue the rate of growth, if not accelerate the growth of renewable energy program, to achieve the 25% reduction by 2020 target.
Renewable energy can help mitigate this correlation, contributing to sustainable development. It can also be enabler for other benefits such as:
Greenko Group is a mainstream participant in the growing Indian energy industry and a market leading owner and operator of clean energy projects in India. The Group is building a de-risked portfolio of wind, solar, hydropower and clean energy assets within India and intends to increase the installed capacity it operates by developing new Greenfield assets.
As this is our first report, this year's performance will be taken as the baseline for the future reports. The details of Scope I and Scope II emissions of reporting plants are presented below:
|Scope 1 Direct GHG Emissions - Diesel consumption from generators||kg||6662|
|Scope 2 Indirect GHG Emissions - Electricity Imported||kg||1581000|
As part of the Group's commitment to responsible business practices, the group has till date registered 21 Clean Development Mechanism (CDM) projects with UNFCCC. These include 5 biomass, 13 hydro and 3 wind power projects, generating a total of 15,90,560 Certified Emission Reductions. We have estimated our CO2 emissions from our operations following the standard of Green House Gas Protocol (GHG Protocol) and using as a reference the emission factors provided by the IPCC. This is fundamental step in ensuring that environmentally responsible companies effectively contributing to the process of reduction of greenhouse gases.
In addition to its contribution to CDM projects, Greenko Group with its operational 2.65 GW of renewable energy projects, has generate over 8.5 billion units of clean energy thereby avoiding approximately 6.9 million tonnes of CO2 the details of which are shown below:
|1||Estimated annual generation from 2.65 GW installed capacity 8 .5 billion||kWh|
|2||Indian grid's average emission factor||0.82 t CO2/MWh(Source: CEA - CO2 Baseline Database for the Indian Power Sector, Version 11.0, April 2016)|
|3||Annual CO2 emissions avoided||6.9 Mn tCO2|
As an environmental conscious group, none of the operations use Polychlorinated Biphenyl (Persistent Organic Pollutants, POP) as well as Volatile Organic Compounds, (VOC)
|Particulars||Unit||Data for FY 2016-17|
Greenko Group's management of wastes is based on its Environment and Social Management System that establishes practices to meet the legal requirements along with reducing or avoiding generation of wastes and to re-use or recycle whenever possible. The system governs identification of the waste streams generated in the process of construction and operations & maintenance at project sites and their classification, manner of collection, transport and appropriate final disposal. Greenko carries out continuous control of generation, storage and allocation of wastes to outsourced contractors.
The typical waste items include hazardous items such as paint cans, mineral oil lubricants, items containing thinner, sawdust contaminated with oil, greases, chemical products, air filters, brake pads, cutting waste, oil filters, papers and plastics contaminated with grease/oil, sweepings etc. and typical non-hazardous waste items include plastic, glass, cardboard, paper, iron & iron scrap, etc. Greenko conducts Environmental Education Program for employees and partners, which includes raising of awareness about environmental issues, with a focus on reduction, reuse and recycling of waste.
Our operations require water supply for in-house water consumption and maintenance. Most of our plants are located and designed to use water from surface water sources. As water is critical to the environment in Indian geography, water management is very critical and material to our operations. None of our plants/projects create any significant water stress in the areas where we operate.
In comparison to conventional sources of energy such as coal/ natural gas, renewable power projects typically have minimal impact on biodiversity. Biodiversity assessment is a key aspect of our projects so to ensure that as the project development activities are conducted in a way that it does not adversely impact biodiversity.
Based on the Precautionary Principle, Greenko Group believes that the absence of absolute scientific certainty should not be a reason for postponing effective and economically viable measures to prevent the threat of serious or irreversible damage to the environment or to human health in the procedures for prior license, installation and operation. The Group is cognizant of the importance of native flora and fauna population in the areas adjoining the project sites. Greenko Group carries out Environmental and Social Impact Assessment (ESIA) study prior to the commencement of the operations, in line with the requirements of ten Equator Principles; eight International Finance Corporation (IFC) Social & Environmental Sustainability Performance Standards (PS); and IFC Environment, Health and Safety (EHS) Guidelines for Renewable Energy Projects.
The potential impacts of the proposed projects have been assessed for relevant social and environmental parameters, considering the IFC Performance Standards. The adverse impacts were found to be minimal in most cases. Environmental Management Plans have been prepared to help mitigating any potential adverse social and environmental impacts.
Biodiversity assessment is a key aspect of our project planning, implementation and operation. Keeping with IFC's Performance Standard on "Biodiversity Conservation and Sustainable Management of Living Natural Resources" we have outlined a procedure in our Environmental and Social Management System and diligently adhere to it. This procedure is audited by an external party during the ESMS audits.
We have been investing towards environmental conservation/ protection initiatives in the following areas:
Some of the key initiatives undertaken by Greenko Group towards biodiversity conservation include:
The grasslands around Rollapadu, a village in Andhra Pradesh's Kurnool district, was declared a sanctuary in 1988 to protect the dwindling populations of the critically endangered Great Indian Bustard. The bustard inhabits dry and semi-arid regions of the country which hold naturally occurring grasslands and savannahs. The decision to declare it as a sanctuary was also to preserve the Rollapadu grasslands, which are critical for the survival of semi-arid and grassland fauna in the Deccan region.
In the recent years, the Great Indian Bustard has been rarely spotted in Rollapadu. Forest officials say they are hardly able to spot the bustards once or twice a year. Not just the Great Indian Bustard, Montagu's harrier-a magnificent migratory bird that travels from parts of central Asia to the sanctuary every winter-has also shown declining trends of its presence. Two decades ago, the bird visited the sanctuary in hundreds. According to a study by the Bombay Natural History Society. In 2016, their recorded numbers had dropped to just about 50-75.
Greenko group has submitted a plan to the forest department to adopt the Rollapadu bird sanctuary and would begin the work very soon. The conservation project, besides other things would involve:
The trees are an important part of our ecosystem, and play a vital role in maintaining the biodiversity of the area. In order to facilitate the construction of Ghani Solar Park in a large scale, Greenko has adopted the latest technology to suit the need to conserve trees within the project site. Greenko has transplanted all the trees without cutting. The trees were taken out from project site and replanted at planned locations and along the roads within the project site. The average age of the trees replanted is above 50 years.
We have adopted the following steps during the process of transplantation.
With a focus on diversification, Greenko Group intends to play a key role in the changing profile of the Indian power sector to facilitate Indian economy sustain high levels of growth enabling the Govt. to meet the Nationally Determined Contribution targets.
Renewable energy in India comes under the purview of the Ministry of New and Renewable Energy (MNRE). Newer renewable electricity sources are targeted to grow massively by 2022, including a more than doubling of India's large wind power capacity and an almost 15 fold increase in solar power from April 2016 levels. Such ambitious targets would place India amongst the world leaders in renewable energy use and place India at the center of its International Solar Alliance project promoting the growth and development of solar power internationally to over 120 countries.
Greenko contributes to nearly 4.6% of the India's total renewable energy generation capacity, including renewable technologies that include wind, small hydro and solar.
Out of Greenko's total 2657 MW installed capacity Wind energy (1075 MW) contributes to 41%, solar energy (1125 MW) contributes to 42%, hydro power (380 MW) contributes to 14% and clean energy (natural gas and biomass) (78 MW) contributes to 3%. The break-up of the same is shown in the pie chart.
We have significantly expanded our installed base of operational projects. In recent years, we have made a number of acquisitions, including the SunEdison acquisition, to increase the total generating capacity of our projects, with a focus on acquiring operational and advanced construction projects near our existing and upcoming project clusters.
In FY 2016-17 Greenko has contributed 14.4% of India's renewable energy capacity addition. The break-up of the same is given in the below table and graph.
|Category||Greenko Capacity Addition (MW) in FY 2016-17||India's Capacity Addition (MW) in FY 2016-17||% of Greenko's Capacity Addition w.r.t. India's Capacity Addition|
As our business has grown, we have increased our expenditures on general and administrative functions necessary to support this growth and support our operations. As part of our efforts to reduce risks in our business, although we currently outsource the operations and maintenance of our WTGs to OEM, we are also building in-house skills concurrently to oversee and back-up the operations and maintenance of our turbines, a model which is different from that generally adopted by our competitors.
A key driver of our results of operations is our ability to bring new projects into commercial operation successfully. As of the date of this report, we have 80 operational projects with a combined installed capacity of 2657 MW and our under-construction projects include interests in three hydropower projects and three wind energy projects having a combined licensed capacity of 184.0 MW. We expect these projects to become operational over the next 48 months. Our under-active development projects include interests in hydropower projects, wind energy projects and solar projects. Our near-term operating results will, in part, depend upon our ability to transition these projects into commercial operations in accordance with our existing construction budgets and schedules.
The group has significantly grown and generated revenue of USD 190.32 Million in FY16 in comparison to the USD 157.98 Million revenue generated during April 2016 to March 2017, amounting to growth by 50%.
Each group entity's approved superannuation schemes, state government provident fund scheme, employee state insurance scheme are defined contribution plans. The contribution paid / payable under the schemes is recognised during the period in which the employee renders the related service.
The employee's gratuity fund scheme, long term compensated absences, pension, post-retirement medical and long term service award benefit schemes are defined benefit plans. The present value of the obligation under such defined benefit plans is determined based on the actuarial valuation using the Projected Unit Credit Method as at the date of the Balance sheet. In case of funded plans, the fair value of plan asset is reduced from the gross obligation under the defined benefit plans, to recognise the obligation on the net basis.
These funds are maintained under a registered Trust and there is no other liability to the group. The Retirement benefit obligations for 2016-17 were US $ 1.91 Mn.
Financial incentive from Government in the form of generation based incentives (GBI) was received for the renewable energy generation.
Such Generation Based Incentive amounted to 6.88 US $ Mn in the reporting period.
The group also received financial benefits in terms of deferred tax benefit, custom and import duty exemption for certain eligible projects and imported components e.g. solar panels.
Regardless of gender, and all other parameters being equal, female employees are paid the same as men across different employee categories. All employees gradually grow through a fair evaluation and promotion program.
Greenko as a technology driven group uses the tools, technologies and instrumentation existing today that allow project management, plant operation and plant maintenance. The technology deployed help increase safety, cut costs through effective project management, predictive maintenance, reduced downtime, and enhanced economic output.
Greenko develops its Hydro projects using state-of-the-art technology. We adhere to global standards and comply with stringent operating procedures that apply to hydro asset management.
During Project implementation stage, latest construction techniques and equipment are used with emphasis on maximum mechanisation and safety. Underground excavation of big chambers, long tunnels and deep shafts in highly challenging and fragile geology of young Himalayas is successfully done by our highly skilled teams with utmost accuracy using highly sophisticated (laser guided) survey instruments. The excavations at extremely inaccessible locations have been tackled with use of unique imported Spider Excavators. Rigorous project management review system is adopted to expedite execution of projects.
Our Hydro plants are automated and have a SCADA system which supports remote monitoring. Connectivity with the remote Hydro Plants is addressed by adopting IoT based system. Adoption of these systems and technologies resulted in significant improvement in operational excellence. Increased plant availability was achieved through real time monitoring of the performance parameters & health condition of the plant and machinery viz. Airgap and Vibration measurement systems and prognosis of the potential problems. Further, through quicker fault finding, root cause analysis and initiation of remedial action, the risks of failures and unplanned outages have reduced. Plant performance is maximized through validation of the operating parameters, comparison with standards/ benchmarks, analysis of the variances and taking corrective actions. Correlating with historical data, status and standards, we are able to optimise predictive and preventive maintenance. Optimum utilization of resources is ensured by leveraging ERP capabilities to manage inventory levels and Plant reliability.
Efficient generation is ensured by deploying technology based scheduling and water management. Also, improved trading of Power & Revenue realization is achieved through better forecasting of the generation in line with the market demand.
We are investing in advanced Analytics with respect to operating conditions, trend analysis, detection of slow & long-term deteriorations and timely R&M to provide the ability to increase life of the assets.
Greenko develops wind farms with modern and sophisticated technology wind turbines having larger hub height, greater rotor diameter and DFIG. Our WTGs are sourced from world Wind technology leaders such as Gamesa and GE. Greenko's in-house competent teams employ powerful tools to conduct comprehensive Wind Resource Assessment and Micro-siting, to maximize the Park Energy yields. This has led to better AEP (Annual Energy Production) and improved Project economics.
Greenko's internal engineering team validates the design of the Wind Turbine Generator and the project implementation team manages the installation of wind farm including internal grid lines (33 kV line to the higher level EHV systems) and power evacuation system.
The Operation and Maintenance of the Wind turbine generator is entrusted with the OEM's Services team. Greenko's in-house O&M personnel oversee the service contract on the OEM and manage the O&M of the balance of plant to maximize availability, Uptime and overall Generation. Advanced SCADA systems help in providing detailed digital information of the operation of the Plant which is subjected to further analysis to improve generation, for better condition monitoring for health and scheduling of maintenance activities. This also lends to sophisticated Forecasting and Scheduling of the plant to help the grid operator to manage the intermittency aspect of wind as a renewable resource. From time to time, sophisticated technology is used to study the vibration signals of the machines to assess the possibility of any impending component failure and thus improving machine reliability. Drones are deployed with high resolution cameras to help view the condition of the blades for any wear and tear or lightning impact to take necessary corrective and preventive measures to avoid any catastrophic failures.
Greenko adopts and applies the state-of-the-art technology available, to augment efficiency and speed during Construction to maximise Asset performance during operations phase of the Solar Plants.
At Project Implementation stage, real time monitoring of project construction through an in-house cloud based software assists in quick identification of lagging activities for rapid initiation of corrective action. This has ensured completion of projects in record span of time.
For automation of material tracking at site, RFID technology is implemented. The RFID tags placed on materials enable tracking with respect to materials received at site, materials issued to contractors and materials available in the warehouse. The RFID tracking software is linked to the in-house project monitoring software and this facilitates appropriate inventory management, resulting in reduction of carrying costs and elimination of delays due to material shortfall.
At Plant Operations stage, IoT based SCADA is adopted to monitor Performance, gauge Performance ratios, detect and prevent failures/ reduce downtimes.
Advanced Ticketing system help efficient and quick servicing required to fix the issues that could potentially lead to downtime. Capturing operational parameter data up to string level enables faster identification and resolution of specific problems at a solar plant and hence improves trouble shooting efficiency. Outage Management System - based on issuance of tickets per activity, to secure faster TAT (Turnaround Time) - optimizes the resources for trouble shooting & breakdown maintenance.
Different methods of module cleaning (Waterless, Water based fixed installation, Water based mobile) are employed to adapt according to availability of resources. Soiling stations help evaluate the energy loss due to soiling and take informed decisions to adopt cleaning frequencies focused on keeping financial losses to the minimum.
The economies of our planet are critically dependent on the services of ecological life-support systems. So in one sense their total value to the economy is infinite. Because ecosystem services are not fully accounted in commercial markets as our economic services are, they are often given too little weight in decisions. We would compromise Our Common Future- the sustainability of humans in the biosphere, if we don't change our course significantly. At Greenko, we are determined to take necessary steps and be a catalyst for change to protect our Planet, while we continue to grow our People and Profits.
In this context, we believe that our compass- measurement and accounting systems by nations, companies and individuals- has to change so that we are steered in right direction, at each step, to achieve sustainable development. United Nations Sustainable Development Goals is one such compass with which we can measure and evaluate our progress and take right decisions. At Greenko, we pursued value creation model that is fundamentally sustainable and undertook sustainability reporting to measure, assess and disclose our progress in contribution to economic, environment and social systems. Through this journey, for over a decade, our commitment to sustainable development and the belief that pursuing this path firmly delivers sustainable shareholder value, has been reinforced. We are already witnessing that technology changes more than favorable changes in regulation have overcome cost and scale barriers and mainstreamed renewable energy. This trend will continue irreversibly and of course, the renewable energy systems and business models would have to transform to cater to and substitute non-renewable energy sources for other end uses like transport etc.
Through this report, we hope to have given an account of our contribution to economy of India, mitigation of climate change, improving local environment and economy and finally caring and growing our people. While, we are determined to be steadfast in our pursuit, we value partnership with our stakeholders as also your views.