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, 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% stake in SE Solar, a special purpose vehicle (SPV) set-up by Suzlon. CLP India has the option to acquire the balance 51% in future. The project is expected to be commissioned by May 2017 and will be funded 80% by debt and 20% 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% 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.
Mr. Rajiv Mishra, Managing Director, CLP India, 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 favourable solar policy, which creates a conducive environment for us. We remain keen and will continue to explore such projects to expand our renewable energy footprint in Telangana and across India.”
Mr. Tulsi Tanti, Chairman and Managing Director, Suzlon Group, 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 6 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 Nation’s energy security.”
Mr. Mahesh Makhija, Director Renewables – Business Development & Commercial , CLP India, said, “CLP’s growing investments in renewable energy underlines our determination to reduce greenhouse gas emissions and help tackle climate change. We have added capacity at a steady pace to become one of the leading independent wind power producers in the country. With the Veltoor solar project, we are now one of the largest renewable energy producers in India with operational and committed capacity of around 1100 MW across wind and solar. We believe that Suzlon can leverage their project execution capabilities to deliver the Veltoor solar project successfully.”
Mr. J.P. Chalasani, Group CEO, Suzlon, said, “The growth of renewable energy in India is unprecedented and is supported by conducive policy environment. The highest solar and wind installations in India achieved during FY16 is a testament of the surge in demand for clean energy. Solar complements our existing strengths, infrastructure and experience in wind and we will leverage the same for executing solar projects. Similar to our business model in wind, we will offer end-to-end solutions in Solar by leveraging our existing project execution capabilities pan-India. We are glad to partner with CLP for the Telangana solar project and we see immense synergy in our resolve to enhance India’s renewable energy portfolio. CLP and Suzlon have successfully collaborated in the past for wind projects and we will continue to partner for powering a greener tomorrow.”