Hyderabad-based solar photo voltaic (PV) module manufacturer, Titan Energy Systems limited, has partnered Ortiz Energia, a subsidiary of Euro 600-million Grupo Ortiz of Spain. Under the partnership, Titan Energy will provide PV modules and other services to PIH Energy, Spain, which is planning to develop a 100Mw solar power project in Gujarat by bringing in foreign direct investment (FDI).
“We were scouting for a renowned EPC partner and a developer who could bring in both equity and debt to set up power projects. While Ortiz is interested in setting up EPC projects, PIH has experience in global sourcing and arranging finances apart from having good knowledge in project implementation,” Rao SYS Chodagam, founder and managing director of Titan Energy, said here on Thursday.
According to Juan Camilo Echeverri, spokesperson for PIH Energy, his company will initially invest in securing approvals that also require mandatory deposits with the authorities to launch solar power projects and then bring equity investors and funding agencies from countries including the US.
A solar power project with a capacity of 100 Mw is currently at an approval stage in Gujarat and it targets to bid for another 200-Mw project in India, according to him. The government permits 100 per cent FDI in solar power development.
Chodagam said apart from the national targets, the fact that some people had bid solar projects at a rate of Rs 7 per unit under the National Solar Energy Mission, as against Rs 12-Rs 13 per unit cost being incurred on a diesel generator, provides ample space for captive solar plants in the days to come.
“Foreign funding agencies will find it attractive even with 7 per cent rate of return on investment unlike domestic financial institutions. That is why we also got the backup of global players,” he said.
Solar PV module manufacturers, who were severely impacted by the recent global recession, will now be having good domestic business opportunities in the light of the changed environment for the solar sector in the country, according to him.
Under the partnership entered with the two Spanish companies, Titan will supply PV modules for a capacity of 300 Mw to the developers, apart from providing operation and maintenance services to the projects.
Titan’s manufacturing facility has a capacity to produce 100-Mw solar modules a year.
