Joint Venture India: CLP India and Suzlon build a joint venture
CLP India and Suzlon Group recently announced their joint venture for a 100 MW solar project at Veltoor in Telangana.
CLP India, one of the largest foreign investors in the Indian power sector, and Suzlon Group, one of the leading renewable energy solutions providers in the world, recently announced their joint venture for a 100 MW solar project at Veltoor in Telangana. As per the agreement signed between CLP India and Suzlon Group on June 14, 2016, CLP India acquired 49 per cent stake in SE Solar, a special purpose vehicle (SPV) set-up by Suzlon. CLP India has the option to acquire the balance 51 per cent in the future. The project is expected to be commissioned by May 2017and will be funded 80 per cent by debt and 20 per cent by equity.
India is a primary growth market for CLP and the Veltoor solar project will make an important contribution to CLP’s expansion plan. Besides, it will aid CLP to meet its target of having 20 per cent of power generated by renewable energy by 2020. Recently, CLP India also signed a MoU with the State Government of Haryana to set up a 132 MW solar project at its Jhajjar power station. Suzlon won solar projects of 210 MW in Telangana through a competitive bidding process and the Power Purchase Agreements (PPAs) for the same were signed in February, 2016. These include one project of 100 MW, one of 50 MW and four projects of 15MW each.
Managing Director, CLP India, Rajiv Mishra said, “Our approach to the market evolves around the kind of opportunities available as well as the prevailing policy framework. We have been keen to invest in solar in India to complement our wind portfolio, and have evaluated projects that will be value-enhancing for our shareholders, whilst being attractive for our customers. The Veltoor solar project meets both the criteria. We believe that the state of Telangana has a favorable solar policy, which creates a conductive environment for us. We remain keen and will continue to explore such projects to expand our renewable energy footprint in Telangana and across India.”
Chairman & Managing Director, Suzlon Group, Tulsi Tanti said, “Globally, renewable energy is witnessing a paradigm shift from being considered alternate to mainstream source of energy. Investments in both wind and solar have garnered traction owing to the improving cost competiveness enabled through technology advancements and the need to transition from fossil fuel dominated energy architecture. The target of 175 GW renewable energy by 2022 outlined by the government of India, offers an opportunity of over 100 GW solar in the next six years. I am confident, with the conducive policy environment and public-private partnership we will seize this opportunity to ensure sustainable, affordable and reliable energy for all. We look forward to continuing our long-standing relationship with CLP and contribute towards the nation’s energy security.”
CLP and Suzlon have successfully collaborated in the past for wind projects and it will continue to partner for powering a greener tomorrow.