Oil India diversifies into renewable energy

Second largest oil company looks at wind and solar energy.

Oil India Ltd (OIL) plans to invest US$92 million to set up renewable energy capacity in the wind and solar sectors as it diversifies into clean energy. The state-owned company is also planning to buy and operate liquefied natural gas (LNG) terminals.

OIL has already invested US$61 million to put together a wind power capacity of 57.6 MW and plans to build a 5 MW solar power project in Rajasthan this year. It plans to invest a total of US$153 million in the renewable sector in the current financial year.

The investments will help the company take advantage of the government’s plans to revive interest in the wind energy sector by reintroducing tax and other incentives that were removed last year. India has reintroduced generation-based incentives aimed at discouraging investments that were merely aimed at availing of tax concessions.

India has an installed power generation capacity of 225,793.10 MW, of which 27,541.71 MW, or 12.2%, is fuelled by renewable energy. Of this, 19,618MW is wind power capacity.

The National Action Plan on Climate Change recommends India generate 15% of its power from solar, wind, hydropower and other renewable sources by 2020.