CLP plans to acquire Suzlon project in Telangana
The Dollar Business Bureau
Hong Kong based electric power generation company, CLP Group, is planning to acquire Suzlon Energy’s 100 MW solar power project in Telangana. CLP India, the wholly-owned local arm of the company is in talks with Suzlon to buy stakes in the project, said a media release.
According to the company, CLP India wants to diversify its clean energy portfolio in India. It is already a leading player in wind power generation with more than 1,000 MW capacity and is also one among the biggest foreign investors in the power sector of the country.
This acquisition will strengthen the Indian solar power industry and also proves that global investors are interested in the secondary market whether the opportunity is in brownfield or greenfield. Experts in the industry say that, approximately around 10,000 MW of clean energy projects are expecting equity investments of around Rs.20,000 crore.
As the government aims to expand 100,000 MW of solar power by 2022, the solar energy sector has seen the best ever capacity additions and lower tariff bids for new projects in the country.
CLP India will initially acquire 49% of the project, as per the power purchase agreement (PPA) guidelines. After a year of commissioning the project, it will have a majority control and later on may acquire Suzlon completely, sources said.
Suzlon will take up the engineering, procurement and construction (EPC) works of the project. The project requires an equity investment of Rs.150 crore in its overall cost of Rs.800 crore. The remaining investment will be induced through debt finance.
Suzlon has won the rights to establish 210 MW of solar power plants in Telangana in FY 2017 across six projects. It is preparing to monetise the 100 MW project first which is scheduled to commission on May 31, 2017. The other projects include one 50 MW and four projects of 15 MW each.
Mahesh Makhija, Director - Commercial, Renewables at CLP India said that the solar power sector in India has received a big push from the government and the policy makers. This will make the sector more attractive for the investors. A favourable environment has been created for companies like CLP, he said.
He further said that the company is focused in accessing a number of avenues in Indian market that include bidding new projects, pre-bid projects, joint ventures and industrial markets.