CLP India, one of the largest foreign investors in the Indian power sector and Suzlon Group announced that they have entered into a joint venture for a 100 MW solar project at Veltoor in Telangana. Under the agreement between CLP India and Suzlon Group, CLP India acquired 49% stake in SE Solar, a special purpose vehicle (SPV) set-up by Suzlon.
However, CLP India has the option to acquire the balance 51% in future. The project is expected to be commissioned by May 2017 and will be funded 80% by debt and 20% by equity.
“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, whilst being attractive for our customers. The Veltoor solar project meets both the criteria,” Rajiv Mishra, Managing Director, CLP India, said.
“Investments in both wind and solar have garnered traction owing to the improving cost competiveness enabled through technology advancements and the need to transition from fossil fuel dominated energy architecture,” said Tulsi Tanti, Chairman and Managing Director, Suzlon Group.
The project will help CLP to meet its target of having 20% of power generated by renewable energy by 2020.