Wind turbine maker Suzlon Energy Ltd on Thursday said it would sell a 49% stake in its special purpose vehicle (SPV) Rudra Solarfarms Ltd to Canadian solar firm AMP Solar Group for Rs14 crore, months after signing similar deals with Ostro Energy Pvt. Ltd and CLP India Pvt.Ltd for its solar projects.
AMP Solar will have an option to acquire the remaining 51% stake in the SPV. Power produced by the project will be sold to the Telangana State Southern Power Distribution Co Ltd at a tariff of Rs5.599 per kilo-watt hour under a 25-year power purchase agreement (PPA).
Suzlon will be responsible for commissioning the 15 megawatt (MW) project and providing operation and maintenance (O&M) services for a period of 25 years. The project, located in Achampet, Telangana is expected to be commissioned in financial year 2017, Suzlon said in a statement on Thursday.
Rudra Solarfarms is part of the 210 MW of solar projects that Suzlon had won in Telangana through a competitive bidding process last year. The earlier deals with Ostro Energy and CLP India were also a part of this 210 MW portfolio.
In January, Suzlon had 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 October, the company agreed to sell a 49% stake in its 50 MW solar project in Telangana to wind energy company Ostro Energy. In June, CLP India, one of the largest foreign investors in India’s power sector, said it bought a 49% stake in Suzlon’s SPV building a 100 MW project for Rs73.5 crore and that it would buy the remaining 51% after a year of commercial operations.
“Indian market is presently booming for the renewable industry and this shall be beneficial to our investors and stakeholders,” said Pinaki Bhattacharyya, chief executive of AMP Solar’s India unit.
India’s total installed solar capacity, including rooftop and off-grid projects, has crossed 10 gigawatts (GW) as on November. The country has a target of setting up 100 GW of solar power capacity by 2022.