SAEL to commission 2.5 GW solar capacity by FY26; eyes IPO amid limited waste-to-energy pipeline

Time of India

21-05-2025

Mumbai:
SAEL
, Delhi-based
waste-to-energy
firm, is planning to commission 3 gigawatts (GW) of
solar capacity
by the end of FY26, as it doubles down on solar energy amid limited opportunities in waste-to-energy, CEO Laxit Awla told ETEnergyWorld in an interview.
'We will be adding a total capacity of 2.5 GW (DC) in this year's time, this includes a solar project at Khavda of the size 1 GW, another 500 MW in Gujarat, 800 MW in Andhra Pradesh and 290 MW in Rajasthan,' Awla said.
He added that this, with the already installed 500 MW capacity, would enable them to cross the 3-GW installed capacity mark.
'Project finance is already closed for all of these projects, with a mix of national and international DFIs and traditional banks,' he said.
The company, which operates in both biomass and solar energy, is also preparing for an
initial public offering
(IPO) within the next 12 months to fund future growth, Awla said, while declining to specify the size or timing of the offering.
'We're preparing to file our DRHP soon. The market sentiment is strong, and growth capital through equity is a logical step forward,' said Awla.
SAEL currently has 6.7 GW of committed solar capacity, with 3 GW expected to be operational by FY26. The company follows a standard 75:25 debt-to-equity financial structure, Awla added.
The IPO-bound company is expanding its footprint in the solar sector through large-scale utility projects, supplying power to government-backed entities such as SECI, NTPC, GUVNL, and SJVN. The company currently operates 3.3 GW of module manufacturing capacity using advanced Topcon technology and plans to develop an integrated 5 GW cell-to-module manufacturing facility in the next two years.
'The solar business is where the scale lies today. We want to be one of the few fully integrated players—from IPP to cell and module manufacturing,' Awla said.
Waste-to-energy: High ESG value, but growth lags
Despite being an early mover in paddy stubble-based
biomass power
, SAEL sees fewer immediate expansion opportunities in waste-to-energy. The company operates 165 MW of biomass plants using paddy stubble — one of the key contributors to northern India's winter air pollution.
'Waste-to-energy is highly impactful from an ESG standpoint and commercially viable, but government awareness and project pipelines remain limited. We're ready to scale up if more bids come in,' said Awla.
Each waste-to-energy plant employs roughly 300 direct and 2,000 indirect workers and helps eliminate about two million tonnes of stubble annually, about 0.2 million tonnes per plant, he added.
Awla said the waste-to-energy segment faces challenges including lack of policy clarity, high capex, and an overemphasis on per-unit electricity costs in government tenders. He emphasized the need to move away from a 'lowest tariff' mindset and toward integrated renewable solutions for round-the-clock power.
'India is rightly moving towards solar-plus-storage and hybrid RE models. Grid stability and power supply, not just cheap units, should be the priority,' Awla said.
SAEL has solar projects under development across Andhra Pradesh, Gujarat, and Karnataka, and has executed complex installations even in remote regions like Mizoram, Awla said, countering the perception that the company is primarily north India-focused.