BPCL eyes to pick 20-25% stake in hydropower projects in renewable push

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Bharat Petroleum Corporation Ltd (BPCL) is evaluating the purchase of minority stakes in hydroelectric projects as part of its broader push into renewable energy, signalling a widening of its clean energy strategy beyond wind and solar, a top official has said.

The state-run oil marketing company is assessing a bunch hydroelectric assets and is open to acquiring stakes of around 20–25 percent, depending on project viability and future potential, said Subhankar Sen, Director (Marketing), BPCL.  Sen described hydropower as a “natural fit” given India’s resource base and the growing role of clean energy in meeting the country’s rising power demand.

The company is targeting to expand to 10 GW by 2035.  The refiner expects 10% of total electricity consumption at operating locations through renewable sources by FY 2026-27.  BPCL has an operational renewable energy portfolio of 1.55 GW, with an additional 0.17 GW under development, taking its total pipeline to about 1.72 GW, according to its recent sustainability report.

The move comes as major Indian renewable energy companies are transitioning from a pure-play solar and wind model towards integrated, round-the-clock (RTC) power solutions, investing heavily in Pumped Storage Hydro (PSP) and Battery Energy Storage Systems (BESS),  a shift driven by the need to manage renewable intermittency and meet high-capacity storage targets set for 2030.

"We are looking at both organic as well as inorganic ways of growth. We have an M&A wing which is evaluating opportunities for inorganic growth. Hydroelectric projects are completely green from that perspective, and I think that’s one opportunity which is just waiting to be exploited in the country. We are open, depending on the project and its future potential and the stake available, definitely going up to maybe about 20–25 percent," Sen told Moneycontrol.

BPCL's  strong balance sheet gives it the flexibility to pursue opportunities where returns are commercially attractive, with project evaluations being carried out on a case-by-case basis, he added.

Meanwhile, BPCL is also in talks with potential partners, including financial and international investors for its  massive greenfield refinery and petrochemical complex near Ramayapatnam Port in Nellore district, Andhra Pradesh,  which will see an investment of approximately Rs 1 lakh crore.

"We are looking at partnerships, those discussions are happening, but as of now we are more focused on getting the project off the ground," Sen added.