Power firm CLP India, a subsidiary of CLP Holdings, and renewables firm Suzlon Group have entered into a joint venture over a 100MW solar project at Veltoor in the Indian state of Telangana.
At a cost of INR735 million (US$10.9 million), CLP acquired a 49% stake in SE Solar, which is a special purpose vehicle set up by Suzlon for solar energy activities. CLP now also has the option to acquire the balance 51% one year after the date of commercial operation of the plant.
Try Premium for just $1
- Full premium access for the first month at only $1
- Converts to an annual rate after 30 days unless cancelled
- Cancel anytime during the trial period
Premium Benefits
- Expert industry analysis and interviews
- Digital access to PV Tech Power journal
- Exclusive event discounts
Or get the full Premium subscription right away
Or continue reading this article for free
The project is expected to be commissioned by May 2017 and will be funded by 80% debt and 20% equity. It includes a 25-year power purchase agreement with Telangana Southern Power Distribution Company at a ficed tariff of INR5.59/kWh.
Through auction processes, Suzlon also has a 50MW and four 15MW solar projects in its Telangana pipeline.
The acquisition helps CLP to meet its target of having 20% of its power generation coming from renewables by 2020.
CLP has also signed a memorandum of understanding (MoU) with the state government of Haryana to set up a 132MW solar project at its Jhajjar coal-fired power station.
Rajiv Mishra, managing director of CLP India, said: “We have been keen to invest in solar in India to complement our wind portfolio. We believe that the state of Telangana has a favourable solar policy, which creates a conducive environment for us.”
CLP now has a committed capacity of 1.1GW of wind and solar across India.
