www.greenkogroup.com
The earth, the air, the land and the water are not an inheritance from our forefathers but on loan from our children. So we have to handover to them at least as it was handed over to us. -Mahatma Gandhi
04 05
06 MISSION 07 BUSINESS OBJECTIVES 08 CORPORATE VALUES 09 BUSINESS MODEL 10 VISION
OVERVIEW EMPOWERING SUSTAINABILITY
12 14 16 18
HYDRO POWER WIND POWER NATURAL GAS POWER BIOMASS POWER
20 MILESTONES 22 FINANCIAL PERFORMANCE 24 LEADERSHIP 26
IN ACTION (ON GOING PROJECTS)
28 CORPORATE SOCIAL RESPONSIBILITY 30 COMMUNITY DEVELOPMENT 32 ENVIRONMENTAL ACCOUNTABILITY 33 PRESENCE 39 OUTLOOK
Greenko Group is one of India’s fastest growing independent power producers, focusing on the development of clean energy assets to meet the ever increasing demand for power. Greenko’s strategy is to create a well-diversified power portfolio in both technological and geographical aspects, with no fuel dependency and at grid parity. We generate electricity from a variety of clean technologies, spread across India.
Sustainability – Our Priority With a balance of resource management and profits into our internal operations and interactions with our employees, customers, and the interconnected communities, Greenko delivers a safer and healthier world with a better environment.
BUSINESS OPERATIONS AND LOWER CARBON EMISSIONS
“Empowering Sustainability” Greenko exists because this fragile earth deserves a voice for its prolonged existence. It needs change. It needs solution. It needs action. We stay true to these exact words, being sustainable in every aspect of our business, in turn portraying sustainability to earth. • Business sustainability – We believe that it is a foundation that contributes across the entire value chain. Our business reflects resiliency over time that can survive shocks because we are intimately connected to healthy economic, social and environmental systems. We create economic value and contribute to healthy ecosystems and strong communities. Our revenue model is backed by dedicated investors and shareholders and is well balanced in terms of investment distribution on various channels of power generation. • Operational sustainability – Full-fledged sustainable operations comprising of hydro power, wind power, natural gas power and biomass and also solar power. Our commitment permeates all levels of our company comprising of product
development, new technologies, stakeholder collaboration, and an immaculate set of backed up management professionals. • Environmental sustainability – The main aim of Greenko is to integrate its businesses, operations and innovations for ensuring the sustainability of our environment and the scarce resources it possesses.
We are passionate about using our business to spread awareness and help customers build efficient organizations, reduce costs, and consider their impact on the environment and society. By addressing the full scope of sustainability, company benefits can range from reduced energy costs, improved brand reputation, increased customer and employee satisfaction, more efficient business operations and lower carbon emissions.
APPROACH VISION
“To be one of the most admired companies in India’s fast growing energy sector.” Greenko’s vision is to be recognized as one among the few companies, out on a task to save the world. The energy sector is vast and the number of players in it is even more. Here’s what sets us apart from the others, the will to preserve the earth and its natural resources.
MISSION
“To grow shareholder value, focusing on the adoption of technologies and methodologies to meet sustainable energy needs of India.� Our aim is to set the bar for all the industries in this sector. Greenko has pledged an oath to conduct its business activities by standing firm to what it believes in. Therefore, the Group is on the verge of fulfilling sustainable energy needs of India by using and promoting only the environment-savvy technologies, practices and methodologies.
BUSINESS OBJECTIVES
• Increase its use of clean energy as a part of global efforts to reduce greenhouse gas emissions. • To become a leading Indian power producer with 1 GW of diversified portfolio of clean energy assets by 2015. • Becoming a leading clean energy producer and distinguished from other players through a strategy unconstrained by fuel supply, environmental permitting issues, power off-take risks or technology providers.
CORPORATE VALUES GREENKO INTEGRATED MANAGEMENT SYSTEMS (GIMS)
Dignity at Work
Treating everyone with respect. We recognize each employee as an individual asset to the firm portraying an ethical code of conduct towards organization, business and co-workers.
Teamwork
Working together as a team towards a common vision. Coming together is a beginning. Keeping together is progress. Working together is success.
Innovativeness
Constant improvement in ideation, work and conduct. Originality by virtue of introducing new ideas, is one of our core values, encouraging every citizen to aim for the sky.
Social Responsibility
Act with responsibility towards the society. People and organizations must behave sensitive and responsible towards social, cultural, economic and environmental issues.
Accountability
Be responsible and true to yourself and your actions. It is not only what we do, but also what we do not do, for which we are accountable.
Excellence
Strive to give one’s best in every sphere. It is not a skill, it is an attitude. It is the unlimited ability to improve the quality of what you have to deliver.
BUSINESS MODEL
Greenko’s strategy is to create a well-diversified power portfolio, with smart and sustainable technological and geographical selection that fulfills increasing demand for power. India is an ideal location for any kind of power generation projects with • Terrain advantages, atmospheric and natural heritage support • The market can no longer depend on the traditional power generation • Government support and policies favoring sustainable power generation projects • Greenko as indigenous player having indigenous scope to grow the economy locally Hence, Greenko has laid on different ways, methods and strategies to tap the advantages in India by pooling financial support from Global markets.
Greenko’s business operations are segmented into 7 categories: Voluntary Carbon Offsets Biomass Power Projects Hydro Power Projects Wind Power Projects Natural Gas Power Projects Sustainable Development Projects Power Trading
Greenko is working on the renewable sources - hydro, wind, natural gas and biomass to minimize carbon emission.
The Group is well positioned to provide financially attractive and sustainable long term returns with strategically distributed revenues among different sustainable power generation methods, which complement each other. Currently, The Group is producing 323 MW through various projects established in north, south and north-east in India and aimed to reach the 1000 MW of production by 2015. Being a part of the Clean Development Mechanism (“CDM”) process, Greenko generates and sells Certified Emission Reductions (“CER”) and Voluntary Emission Reductions (“VER”), which are two other forms of revenue generation. Going forward, we aim to sell CERs on a more consistent basis. While carbon revenue enhances project profitability, our project assessments continue the existing prudent approach of excluding it from the fundamental economic analysis.
HYDRO POWER Traditionally many nations have been depending on hydro power generation that has been producing a great deal of power very cheaply, but not able to supply the demand because of increased consumption. Greenko identified the potential of hydro power generation even through small and medium water resources and has been tapping them in an innovative and sustainable fashion.
Today, with 17 hydro power projects, Greenko is one of the largest operator and developer of small and medium hydro projects in India producing 179.25 MW , alongside preserving a balance of assets and risk distribution over geographical and technological aspects.
Today, with 17 hydro power projects, Greenko is one of the largest operator and developer of small and medium hydro projects in India producing 179.25 MW
Greenko’s northern hydro projects are prominent for excellent hydrology and have performed strongly. As part of the further portfolio expansion, we have come up with a new project that connects directly to the high voltage transmission network and deliver premium priced peaking power and results in better than 50% Plant Load Factor.
Striving towards the vision of reaching 1,000MW of operational capacity by 2015, Greenko has 200 MW capacity hydro projects under construction and a 300 MW capacity projects under development. In 2012, Greenko has acquired eight operational hydro power projects in Himachal Pradesh and proved its fast paced vision.
WIND POWER India has a favorable air blowing atmosphere for establishment of wind power projects in large scale. Greenko’s strategy on wind power is based on extensive analysis aimed at delivering a reliable long term generation profile and is also focusing on medium wind blowing atmosphere by partnering with a large and advanced technological supplier – General Electric Company (GE).
Currently, Greenko’s operational wind power project is producing 65.60 MW. Whereas, 350 MW projects are under construction, 700 MW projects are active development and 1,015 MW assets are in development. Greenko believes in long term reliable power generation through sustainable procedures and a differentiated execution plan from the broader Indian wind energy market.
The Greenko’s wind strategy is to enable capacity optimization out of refined, validated wind data, robust project design, selection of technology and economic return hurdles.
Greenko’s operational wind power project is producing 65.60 MW. Whereas, 350 MW projects are under construction, 700 MW projects are active development and 1,015 MW assets are in development.
NATURAL GAS POWER The power generated from natural gas can be called as no carbon emission energy. Therefore the Greenko’s vision of sustainable development also considers the usage of natural gases for power generation. A 36.8 MW liquid fuel plant is the current Greenko’s running project that has been generating operating profits at par with
its anticipation. Though the expansion of these projects is unpredictable at this stage, the Operating profit of natural gas power is predictable with high returns. On the other hand, with an uncertainty of gas availability, land and permits for the natural gas project have been obtained by Greenko.
A 36.8 MW liquid fuel plant is the current Greenko’s running project that has been generating operating profits at par with its anticipation.
BIOMASS POWER Greenko’s literal environmental sustainability through innovative operations resulted in usage of plant material and animal waste. The operational six biomass power projects are currently contributing 41.5 MW to its total capacity. We recognized the value of diversification in power assets portfolio and hence Greenko has considered retaining the sustainable aspect with
biomass methods even though it does not offer scope for superior growth as hydro and wind assets can present. Improved underlying profitability through active and successful management of operational expenses and improved revenue realization is possible through our biomass plants.
We recognized the value of diversification in power assets portfolio and hence Greenko has considered retaining the sustainable aspect with biomass methods even though it does not offer scope for superior growth as hydro and wind assets can present.
BALANCING CLEAN ENERGY
IN ACTION
(Ongoing Projects)
Greenko adds 6 new hydro projects to development pipelines, additional 425 MW of projects under active development: We have added 6 new run-of-river hydro projects totaling 425 MW to our active development pipeline. Two projects have been added to the existing hydro cluster in Himachal Pradesh and four are being added to form a new regional cluster in Arunachal Pradesh, with site work expected to start in both locations by late 2013.
Dikchu Hydropower: The project is progressing well and is now one third complete. It remains on time and on budget, despite the significant challenges caused by last year’s flooding and landslides in Sikkim. The underground power house excavation is completed, the head race and pressure shaft tunneling is on schedule, and project commissioning is still planned for late 2014.
Devgarh wind project, Rajasthan: This project has been promoted into the active development portfolio and would be commissioning this year. Greenko has been evaluating several projects in Rajasthan over the last four years and the recent significant increase in power tariff to Rs. 5.44/kWh brought Devgarh’s development timeline forward. Greenko’s other wind project in Rajasthan (Jaisalmer - 100 MW) remains on track for construction to start in late-2013.
Balavenkatpuram Wind Farm: The site access work is underway and all key permits are in place, along with the construction contracts. Phase-1 (51.2 MW) turbine components are expected to begin arriving on site around the end of 2012, with commissioning targeted to start in mid-2013. Phase-2 (49.6 MW) remains on track for the start of construction in late 2013.
Natural Gas liquid fuel plant: The 36.8 MW liq uid fuel plant continues to generate operating profits in line with expectations. The land and permits for the project have been obtained and financial closure was completed with IL & FS. We expect to begin construction towards the end of the next financial year, but this remains dependent on currently uncertain third-party guidance as to the timing of gas availability.
MILESTONES
Greenko itself is a sustainable idea to mitigate the risks that arise in near and long-term future in the process of power generation. We are proud of the first achievement. It is the inception of Greenko in January, 2006, based on our idea of renewable energy.
2006
Our thought process has reached to the point where we look for and implement sustainability at every other angle of business, because we believe the mother earth is our inheritance. Hence, every other business step we take involves only sustainability. Greenko was able to consolidate its position as well-funded company soon after its inception, by transforming its vision through the markets and raising funds for â‚Ź6 million.
Greenko went public in November, 2007 by listing shares on AIM and raised $65 million followed by acquiring a 36.8 MW liquid fuel based operational plant that was soon turned as 32 MW natural gas plant.
2008
The Ravi Kiran biomass plant was 50% owned by Greenko at the time of its IPO, became 100% owned by Greenko.
2007
2009
We started working on Greenko’s wind energy projects as part of making a mark in all viable platforms for sustainable power generation.
In July, 2010, Greenko acquired 24MW operating run-of-river hydro asset and on 14th April, 2011 secured concessions to build new wind and hydro assets.
2011
2010
Greenko and GE has teamed up to develop wind energy projects and announced $115 million wind energy venture in India.
Greenko acquired 56 MW of additional hydro assets in March, 2012. As on October, 2012, The Group has seen 30% rise in fullyear revenue. We had done a successful acquisition of eight operational hydropower projects in Himachal Pradesh during December, 2012. Now Greenko is well positioned to provide financially attractive and sustainable long term returns as a result of the grid parity achievement of The Group’s wind and hydro portfolio, coupled with increased demand.
2012
FINANCIAL PERFORMANCE
Sustainable Returns
Greenko’s financial performance is consistent while balancing the returns and purchase of assets.
The increased EBITDA from 57% to 74% is an evidence of Company’s performance even at the times of fluctuation in currency value .
Another transparent proof for our commitment is the value of a strategy, which is focused on clean energy in India’s fuel and power market by adding 1,071 MW of assets to Greenko’s business. Importantly, the endorsement of investments by Standard Chartered, GE and our shareholders consolidates to over €152 million that backed our plans in pipeline to great projects.
1
Revenue EBITDA Assets
2
3 2
1
2
1
3 3
2011-2012
1
€36.93m €27.31m €421,733.76m
2010-2011
2
€44.44m €25.18m €287,930.40m
2009-2010
3
€19.28m €7.8m €269,482.62m
LEADERSHIP
Y Harish Chandra Prasad
Anil Kumar Chalamalasetty
Mahesh Kolli
Vasudeva Rao
Non-Executive Chairman Founder and principal shareholder of Malaxmi NBFA, he is also a qualified engineer. During his career, Harish has been responsible for setting up over 3,500 MW of installed capacity of power plants within India.
Founder, President & Joint Managing Director A graduate in Mechanical Engineering from Karnataka, India, he is responsible for driving the vision, business development and new project initiatives of The Group.
Founder, Chief Executive & Managing Director Anil is a graduate in Computer Science and holds a Masters from North West University. He is responsible for effectively implementing the strategic business road map of Greenko Group.
Executive Director & Chief Financial Officer Vasu is a qualified Chartered Accountant and has more than 20 years senior managerial experience and most recently was an Executive Director for XL Energy Ltd (from 2005) which has diversified interests including significant solar power operations.
Dr. Vivek Tandon
Non-Executive Director He has a PhD from University College, London. He has published numerous papers and has several patents to his name. Prior to forming Aloe, Vivek co-founded a number of technology companies. He has also held several senior executive management positions in corporations including UK Managing Director of Viventures.
Vinodka Murria
Non-Executive Director Vin has won the “Asian Businesswoman of the year” award in March, 2010 and was also the recipient of “Asian Woman of Achievement Award” in May, 2009. Based in London, she has over 20 years of experience in the developing and building technology.
Hari Kiran Vadlamani
Non-Executive Director Kiran is a qualified Chartered Accountant and has over 20 years of professional experience out of which about 10 years has been in the energy sector. Kiran is the CEO and Founder of Advaita Energy Partners Pte Ltd, a Singapore based investment management company in the energy sector.
Keith Henry
Non-Executive Director Mr. Keith Henry has over 35 years of rich experience in the global power and energy sectors. Mr Henry is a Fellow of the Royal Academy of Engineering and a chartered civil engineer with a BSc degree from London University and a MSc from the University of Birmingham.
Corporate Social Responsibility Greenko and its family strive to ensure that the principles of environmental stewardship are implemented throughout their company’s operations. Adhering to environmental policies that govern the way we use our facilities, and procure resources. Each year our local offices identify projects that provide the greatest contribution towards creating sustainable communities whether in terms of climate change or poverty alleviation. Greenko believes it is important to lead by example, so it considers people, planet and prosperity in everything it does. We firmly believe that our actions should not only improve shareholder value, but also benefit the employees, society and the environment. Our Corporate Social Responsibility principle guides our initiatives on the health and safety of our employees, conservation of resources and environmental protection, as well as our contributions to the communities within which we operate. We maintain strict compliance with the environmental laws governing plant operations and maintenance in areas relating to environmental standards.
Greenko believes it is important to lead by example, so it considers people, planet and prosperity in everything it does.
COMMUNITY DEVELOPMENT
Infrastructure development
AID by
at sites locations with access to roads and power supply.
• Giving power through distribution of solar lamps to the households
Regional employment
• Education of school children is supported with supply of books and umbrellas.
is by giving jobs to local people including the workforce under hired contract.
• Regular health check and awareness camps • Support to calamity affected people.
Supporting holistic growth of people by addressing fitness and sports events along with competitions to bring out intellectual abilities among diverse groups.
ENVIRONMENTAL ACCOUNTABILITY
• Community representatives to give awareness on the protection of environment in local communities • Educating and training farmers in managing the waste generated from their produce. • Deploying a raw material procurement system. • Designing a unique programme of tutorials to make both farmers and the local populations aware of the value of biomass. • Sponsoring and holding seminars to promote usage of clean energy.
PRESENCE
8 states 25 Operational Power Projects 14 Upcoming Power Projects Operating with a team of 1000 employees, Greenko has established a pan India presence in the span of a short time. Our success in catering to a healthy environment is what has taken us to where we are today. We have our projects located in various states across India - Himachal Pradesh, Karnataka, Chhattisgarh, Sikkim, Arunachal, Rajasthan, Andhra Pradesh, and Maharashtra.
Projects in Northern India
Projects in Southern India
7 operational hydro projects, with overall installed capacity of 42 MW, and 2 upcoming projects of approximately 35MW capacity in Himachal Pradesh reveal the strong presence of Greenko in Himalayan territory where the perennial streams contribute to the consistent power generation. Rajasthan on Northwest of India is the next place for our prosperous and ever increasing wind portfolio.
Projects in South India laid a sustainable platform to Greenko business, encompassing diversified portfolio - Hydro, Biomass and Natural gas contribute to 80% potential of total installed capacity of the organisation. 200 MW upcoming wind power capacity in Karnataka and Andhra Pradesh, adding to the spectrum of clean energy means, will reinforce the image of Greenko as a full-fledged player and an unprecedented alternate energy leader in South India.
Projects in Eastern India
Projects in Western India
The hills of East India are rich with water streams and their altitude above sea level makes a great difference enabling the transformation of high kinetic energy of water into electricity. As much as 93 per cent of hydro electric capacity is yet to be tapped in the North Eastern Region (NER) of India. Greenko is coming up with 96 MW at Dikchu in the state of Sikkim.state of Sikkim.
The western part of India presents a promising environment for clean energy generation through wind and biomass projects, apart from the advantageous solar plants. Leveraging the potential agricultural markets of Chhattisgarh, which offer abundant botanical waste to generate biomass power Greenko is operating two projects of 8MW each in the state. The company also focuses on wind power generation at Ratnagiri in Western Ghats of India.
OUTLOOK
Greenko’s activities have a significant impact on local employment and help reducing rural depopulation, which is one of the biggest challenges for modern India. Greenko continues to invest in its business functions to meet the needs of the growing organization. We are pleased with our projects that have been accomplished so far and of the progress of those that are under construction. We strongly believe that Greenko’s diversified portfolio of projects, both operating and under active development is the most attractive long term asset in the Indian market including electricity to State Electricity Boards (SEBs) and state owned distribution companies.
Information last edited in March 2013
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