Canadian Solar buys 49% stake in Suzlon's two solar projects

Suzlon Group has sold its stake in two solar projects of 15 MW each located at Ramannapet and Kamareddy in Telangana to Canadian Solar, one of the world’s largest solar energy companies. As per the deal, Canadian firm will acquire 49 percent stake in Avighna Solarfarms Limited and Amun Solarfarms Limited, the special purpose vehicles (SPVs) setup by Suzlon for executing these projects.

Canadian Solar will provide its top tier solar PV modules, arrange project financing and contribute its technology expertise to ensure the commissioning of these projects in the financial year 2017 (FY17). The offtaker of Ramannapet project will be Telangana Southern Power Distribution Company Limited and for Kamareddy project will be Telangana Northern Power Distribution Company Limited. Suzlon will be responsible for project commissioning and to provide comprehensive operation and maintenance services for a period of 25 years. 

Suzlon won solar projects of 210 MW in Telangana through a competitive bidding process and the PPAs for the same were signed in February 2016. These include one project of 100 MW, one of 50 MW and four projects of 15 MW each. 

Steve Iyer, vice president (operations), Canadian Solar, said, “Canadian Solar is pleased to partner with Suzlon for the development of 30 MW solar power projects in Telangana. These projects mark our first investment in the Indian solar sector and shall contribute to our global pipeline of 2.4 GW of projects in late-stage development.” 

J P Chalasani, group CEO, Suzlon Group, commented, “Suzlon aims to aid green energy requirement by delivering sustainable and affordable energy to all. We are thankful to Canadian Solar for the confidence reposed in Suzlon and its technology. For Suzlon, this is a step forward towards developing environment friendly energy sources, underscoring its commitment towards the government’s target of setting up 100 GW of solar power capacity by 2022.”