June 28, 2016: Following the recent acquisition of Welspun Renewables Energy by Tata Power for solar project, it is CLP India that has now entered into a partnership with Suzon Group Company to set up a 100 MW solar project at Veltoor in Telangana’s Mahbubnagar district with an investment of Rs 760 crore.
The major foreign investor in Indian power division has announced that it has acquired 49% stake in Suzlon for the solar project. Under the partnership, Suzlon would continue to hold 51% SE Solar, a special purpose vehicle it had set up for the venture. On the other hand, CLP India has the choice to get hold of the other 51% per year after the commissioning of the solar project.
The Veltoor division will be funded 80% by debt and 20% by equity and is likely to be commissioned by May 2017. The Telangana Southern Power Distribution Company has signed a contract for the project’s power purchase agreement (PPA) for a period of 25 years.
CLP India & Suzon tie up for 100 MW solar project in Telengana
Suzlon won solar projects of 210 Mw in Telangana through a cut-throat bidding procedure and the PPAs were signed in February 2015. These include one project of 50 MW, other of 100 MW and four of 15 Mw each.
CLP aiming it big in India
CLP entered the Indian power division in 2002, with the acquirement of a 655 Mw gas-fired power plant in Bharuch, Gujarat. It also possesses and operates a 1,320 coal-fired power plant in Jhajjar, Haryana.
This giant player is an entirely owned subsidiary of CLP Holdings, listed on the Hong Kong Stock Exchange and one of the foremost investor-owned power trades in Asia. CLP India has a dedicated investment of Rs 14,500 crore. The widespread generation assortment that amounts to more than 3,000 MW consists of renewable energy (RE), gas and cola power plants.
It is one of the chief RE producers in the nation, with functioning capacity of 1,100 MW across solar as well as wind energy.
India- A potential solar market
CLP has recognized India as a potential soar market and with the Veltoor project; the company is looking to make a major contribution in expansion of its business plan. Most importantly, CLP is expecting to meet its aim of having 20% of power generated by renewable energy (RE) by 2020.
CLP’s approach to solar market revolves around the type of opportunities that are accessible. The company has been eager to invest in solar in India to balance its wind power section and have assessed projects that will be value-enhancing for its shareholders, while being eye-catching for its consumers, according to a spokesperson of CLP India.
The spokesperson further said that Telangana’s solar energy strategy had a conducive environment for investment. The company is eager and will continue to look at such projects. Veltoor is the primary joint undertaking project for CLP India. After this, CLP is planning to spread its presence across eight states of the nation, the spokesperson added.
Developing cost competitiveness
The investments in solar and wind power have gained traction due to the developing cost competiveness enabled via technology advancements and the requirement to changeover from a fossil fuel-dominated energy architecture. The objective of 175 GW of RE by 2022 summarized by the India government provides a chance of more than 100 GW in solar within the coming six years, according to Tulsi Tanti, chairman and managing director of Suzlon Group.