 "CLP India buys into Suzlon solar venture")
Marking its debut in solar energy, CLP India, one of the largest foreign investors in the Indian power sector, announced on Monday it was buying a 49 per cent stake in a Suzlon Group company.
The joint venture will be setting up a 100 Mw solar project at Veltoor in Telangana's Mahbubnagar district, an investment of Rs 760 crore. The two companies signed an agreement last Tuesday.
Suzlon would continue to hold 51 per cent in SE Solar, a Special Purpose Vehicle it had set up for the project. CLP India has the option to acquire the other 51 per cent a year after the project's commissioning.
This is the second deal announced in the solar energy segment in less than a fortnight. Tata Power announced acquisition of Welspun Renewables Energy on June 12, in a deal worth Rs 9,249 crore.
The Veltoor unit is expected to be commissioned by May 2017 and will be funded 80 per cent by debt and 20 per cent by equity. The power purchase agreement (PPA) for the project has already been signed with the Telangana Southern Power Distribution Company, for 25 years. Power will be supplied at a fixed Rs 5.59 a unit (kw/hour).
India is a primary growth market for CLP and Veltoor project will make an important contribution to the expansion plan, the Hong Kong-based company said. Beside, it will aid CLP to meet its target of having 20 per cent of power generated by renewable energy (RE) by 2020.
Mahesh Makhija, director, renewables-business development and commercial, CLP India, told this newspaper their Indian arm had gone ahead and already had a third of its portfolio coming from renewables.
CLP India is a wholly owned subsidiary of CLP Holdings, listed on the Hong Kong Stock Exchange and one of the leading investor-owned power businesses in Asia. The company has a committed investment of Rs 14,500 crore. The diversified generation portfolio, amounting to a little over 3,000 Mw, covers RE, supercritical coal and gas-fired power plants.
CLP India is one of the largest RE producers in this country, with operational capacity of 1,100 Mw across wind and solar energy. Of this, 925 Mw is wind capacity, wholly owned by CLP. Suzlon have been setting up wind energy farms for CLP in the past.
Recently, CLP India signed an agreement with the Haryana government to set up a 132 Mw solar project at its Jhajjar power station.
Rajiv Mishra, managing director, CLP India, said: “Our approach to the market evolves around the kind of opportunities available, as well as the prevailing policy framework. 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.”
Suzlon won solar projects of 210 Mw in Telangana through a competitive bidding process and the PPAs for these were signed in February.
These are one project of 100 Mw, one of 50 Mw and four of 15 Mw each.
He said Telangana's solar energy policy had a conducive environment for investment. “We remain keen and will continue to explore such projects.”
Veltoor is the first joint venture project for CLP India. After this new investment, CLP India would have a presence in eight states.
Tulsi Tanti, chairman and managing director, Suzlon Group, 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 a fossil fuel-dominated energy architecture. The target of 175 Gw of RE by 2022 outlined by the Government of India offers an opportunity of over 100 Gw in solar in the next six years.”
Makhija said the company’s interest in solar energy did not mean it would prefer this over wind energy. “We will continue to invest in both; they would not be competing with each other,” he said.
CLP entered the Indian power sector in 2002, with the acquisition of a 655 Mw gas-fired power plant in Bharuch, Gujarat. It also owns and operates a 1,320 Mw (two of 660 Mw) coal-fired power plant in Jhajjar, Haryana.
The joint venture will be setting up a 100 Mw solar project at Veltoor in Telangana's Mahbubnagar district, an investment of Rs 760 crore. The two companies signed an agreement last Tuesday.
Suzlon would continue to hold 51 per cent in SE Solar, a Special Purpose Vehicle it had set up for the project. CLP India has the option to acquire the other 51 per cent a year after the project's commissioning.
This is the second deal announced in the solar energy segment in less than a fortnight. Tata Power announced acquisition of Welspun Renewables Energy on June 12, in a deal worth Rs 9,249 crore.
| CLP’S INDIA PORTFOLIO |
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The Veltoor unit is expected to be commissioned by May 2017 and will be funded 80 per cent by debt and 20 per cent by equity. The power purchase agreement (PPA) for the project has already been signed with the Telangana Southern Power Distribution Company, for 25 years. Power will be supplied at a fixed Rs 5.59 a unit (kw/hour).
India is a primary growth market for CLP and Veltoor project will make an important contribution to the expansion plan, the Hong Kong-based company said. Beside, it will aid CLP to meet its target of having 20 per cent of power generated by renewable energy (RE) by 2020.
Mahesh Makhija, director, renewables-business development and commercial, CLP India, told this newspaper their Indian arm had gone ahead and already had a third of its portfolio coming from renewables.
CLP India is a wholly owned subsidiary of CLP Holdings, listed on the Hong Kong Stock Exchange and one of the leading investor-owned power businesses in Asia. The company has a committed investment of Rs 14,500 crore. The diversified generation portfolio, amounting to a little over 3,000 Mw, covers RE, supercritical coal and gas-fired power plants.
CLP India is one of the largest RE producers in this country, with operational capacity of 1,100 Mw across wind and solar energy. Of this, 925 Mw is wind capacity, wholly owned by CLP. Suzlon have been setting up wind energy farms for CLP in the past.
Recently, CLP India signed an agreement with the Haryana government to set up a 132 Mw solar project at its Jhajjar power station.
Rajiv Mishra, managing director, CLP India, said: “Our approach to the market evolves around the kind of opportunities available, as well as the prevailing policy framework. 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.”
Suzlon won solar projects of 210 Mw in Telangana through a competitive bidding process and the PPAs for these were signed in February.
These are one project of 100 Mw, one of 50 Mw and four of 15 Mw each.
He said Telangana's solar energy policy had a conducive environment for investment. “We remain keen and will continue to explore such projects.”
Veltoor is the first joint venture project for CLP India. After this new investment, CLP India would have a presence in eight states.
Tulsi Tanti, chairman and managing director, Suzlon Group, 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 a fossil fuel-dominated energy architecture. The target of 175 Gw of RE by 2022 outlined by the Government of India offers an opportunity of over 100 Gw in solar in the next six years.”
Makhija said the company’s interest in solar energy did not mean it would prefer this over wind energy. “We will continue to invest in both; they would not be competing with each other,” he said.
CLP entered the Indian power sector in 2002, with the acquisition of a 655 Mw gas-fired power plant in Bharuch, Gujarat. It also owns and operates a 1,320 Mw (two of 660 Mw) coal-fired power plant in Jhajjar, Haryana.