Larsen & Toubro unveils dedicated renewable energy vertical to boost clean energy initiatives

Larsen & Toubro Limited (L&T) has formally established a new Renewable EPC (Engineering, Procurement, and Construction) vertical, carving it out from its existing Power Transmission & Distribution business within the Infrastructure Projects segment. This strategic reorganization reflects L&T’s response to the rapidly growing global demand for clean energy and its commitment to supporting the energy transition.

The shift towards renewable energy has accelerated in recent years as the world intensifies its efforts to combat climate change. Decarbonized electricity is increasingly seen as crucial in this battle, with technological advancements in renewable energy sources like solar and wind playing a pivotal role. The global energy landscape is evolving, driven by the need for reliable and high-quality power. The inherent variability of renewable sources necessitates innovative solutions such as hybrid energy systems and energy storage to ensure a stable supply. These developments are prompting the emergence of new market structures, including capacity and flexibility markets.

India has been at the forefront of this renewable energy push, aligning its goals with the broader vision of a sustainable and equitable global climate strategy. The Indian government has laid out clear plans for increasing the share of non-fossil fuel-based electricity, supported by initiatives such as the Green Energy Corridors. The country views the expansion of green jobs and renewable energy as central to its development goals, including the vision for a Viksit Bharat (Developed India).

In the Middle East, the conditions are particularly favorable for solar energy development due to high solar irradiance and ample land availability. This region’s focus on solar power aligns with peak cooling demands and offers opportunities for exporting fossil fuels. L&T’s strategic focus includes not only the Middle East but also adjacent markets such as the SAARC (South Asian Association for Regional Cooperation), ASEAN (Association of Southeast Asian Nations), CIS (Commonwealth of Independent States), and various African countries.

L&T’s global portfolio is impressive, with a cumulative 22 gigawatts peak (GWp) of renewable EPC experience. This includes a diverse array of projects such as Ground Mounted Solar, Floating Solar, and Wind Balance of Plant projects. The company has also implemented Battery Energy Storage Systems totaling 3 gigawatt-hours (GWh). This extensive experience, combined with L&T’s expertise in Grid and Digital Energy Solutions, has established its reputation for delivering large-scale renewable projects with precision and safety.

Significant projects in L&T’s portfolio highlight its capabilities and achievements. In Saudi Arabia, L&T is involved in some of the largest renewable energy projects, including the 700 megawatt (MW) Ar Rass Solar PV Independent Power Producer (IPP), the 2,000 MW Ar Rass-2 Solar PV IPP, and the 1.6 gigawatt (GW) Sudair solar plant. Recently, L&T secured contracts for two additional plants with a combined capacity of 3.5 gigawatts alternating current (GWac). Additionally, L&T is playing a crucial role in the development of the power and grid systems for one of the world’s largest green hydrogen projects at NEOM.

In the United Arab Emirates (UAE), L&T is advancing its work on the 250 MWp solar PV plant for the Amaala Project and has completed a significant solar installation in Jeddah. The company is also involved in Phase 6 of the Mohammed bin Rashid Al Maktoum Solar Park in Dubai, which is among the largest solar parks globally.

In India, L&T has made substantial contributions to the renewable energy sector with notable projects like the 90 MW Omkareshwar Floating Solar project and India’s first grid-scale solar cum storage project. The company has also implemented decentralized distributed generation solutions for remote villages, showcasing its commitment to expanding renewable energy access.

To streamline operations and enhance management oversight, L&T has created the Renewable EPC business vertical as part of its construction divisions. Mr. A. Ravindran, Senior Vice President at Larsen & Toubro, has been appointed as the Head of Renewable Business. This new structure is expected to provide greater autonomy and closer alignment with customer needs, facilitating continued excellence in the renewable energy sector.

S.N. Subrahmanyan, Chairman and Managing Director of Larsen & Toubro, commented on the development: “The growth of renewable EPC business has accelerated in recent years. Thanks to our early start and investments, we have built an organization that is uniquely placed in the value chain of creating sustainable energy infrastructure. This space is promising. Multiple opportunities are visible. We want to capitalize on our success and wish to remain a preferred partner of choice for our customers. Creation of this vertical will give increased autonomy, customer proximity, and leadership oversight to the business and enable us to excel in this space.”

The establishment of this dedicated Renewable EPC vertical underscores L&T’s strategic commitment to expanding its footprint in the renewable energy sector. As global demand for clean energy continues to rise, L&T’s enhanced organizational structure is poised to drive innovation and efficiency in the development of sustainable energy infrastructure.