Japanese investment firms, Takara Leben Co Ltd and Kuni Umi Asset Management Co Ltd, will invest in Rs 258-crore Nettlinx SVGreen waste to energy plant in Hyderabad. Loka Manohar Reddy, Chairman, Nettlinx Ltd, announced the development at a press conference on Friday. Nettlinx is an IT firm and has recently stepped into the waste to energy to diversify into the renewable energy sector.
The capacity of waste to energy plant is 12 MW and will come up near Pharma city. SVGreen will build the plant in technical collaboration with Hitachi Zosen. It will take around 18-24 months to build the plant. The total cost of the waste to energy project is around Rs 258 crore. Both the Japanese firms will jointly invest 30 per cent of Rs 78 crore equity component of the project. Nettlinx will invest 40 per cent while the remaining 30 per cent will be held by Venkateswar Reddy, Managing Director, SV Green, and other promoters.
SVGreen is developing the Waste to Energy plant using waste collected in Greater Hyderabad Municipal Corporation (GHMC) limits. GHMC will deliver 700 tonnes of municipal waste daily at the doorsteps of the plant. SVGreen has acquired suitable land, obtained necessary statutory clearances and approvals from State government agencies.
Tariff of Waste to energy in Telangana
Telangana State Electricity Regulatory Commission (TSERC) is particular about determining tariffs of all renewable energy sources. It, therefore, keeps the investors’ confusion over tariff at bay that other DISCOMs face and create.
TSERC has determined the waste to energy tariff for FY 19 at INR 7.40 per unit. SV Green will, therefore, have to sell the power from this plant to Telangana DISCOM at this rate. The duration will be 30 years.
The tariff tends of in the state in the last three years is:
Unlike solar energy the tariffs of waste to energy increase due to variability in fuel cost. TSERC has worked out a 5% escalation in the variable cost. Since SVGreen is procuring the waste from GHMC the tariff is likely to remain stable.