CLP India acquired 49 per cent stake in SE Solar, a special purpose vehicle (SPV) set-up by Suzlon, as per the agreement signed between CLP India and Suzlon last week.
CLP India, a subsidiary of Hong Kong-based power company CLP, has the option to acquire the remaining 51 per cent in future, the company said in a statement.
The project is expected to be commissioned by May and 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 help CLP to meet its target to generate 20 per cent of power by renewable energy by 2020.
The 100 mw project will be Suzlon’s first venture in the solar energy sector.
Recently, CLP India signed an MoU with Haryana government to set up a 132 MW solar project at its Jhajjar power station.
“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… We will continue to explore such projects to expand our renewable energy footprint in Telangana and across India,” Rajiv Mishra, managing director, CLP India, said.
Suzlon has 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 15 mw each.
“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 competitiveness enabled through technology advancements and the need to transition from fossil fuel dominated energy architecture,” Suzlon Group’s chairman and managing director Tulsi Tanti said.