Wind turbine maker Suzlon Energy Ltd on Wednesday said it will sell a 49% stake in its 50 megawatt (MW) solar project in Telangana to wind energy company Ostro Energy Pvt. Ltd, months after selling a project to CLP India Pvt.Ltd.
Ostro Energy will acquire 49% stake in Prathamesh Solarfarms Ltd, a special purpose vehicle (SPV) set up by Suzlon for executing the project, and will have the option to acquire the remaining 51% in future, Suzlon said in a statement. Suzlon will still be responsible for building the project and operation and maintenance services for a period of 25 years.
The project, which is expected to be completed this fiscal year, is a part of the 210 MW of solar projects that Suzlon had won in Telangana through a competitive bidding process last year.
Suzlon had in January announced its official entry into the solar energy market, receiving letters of interest (LoI) for the 210 MW projects that it won in Telangana in August 2015. These included a 100 MW project, a 50 MW project and four projects of 15 MW each, and the power purchase agreements (PPAs) were signed in February.
In June, CLP India, one of the largest foreign investors in India’s power sector, said it has bought a 49% stake in Suzlon’s SPV building the 100 MW project for Rs.73.5 crore and that it would buy the remaining 51% after a year from commercial operations.
Ostro Energy has a target of reaching 1,000 MW in renewable energy capacity in India by 2018. This is the company’s first entry in the country’s solar energy market.
Of the 15.5 GW of wind energy capacity that Suzlon has installed till date, about 9.5 GW is in India.