Canadian Solar Sells 80 MW Solar Project in Maharashtra

Canadian Solar, a global module supplier and solar project developer, has sold its 80 MW (108 MW DC) grid-connected solar project in Maharashtra.

The sale of the project by Canadian Solar is in line with the company’s policy of developing few projects to showcase their module capabilities and then selling them off.

According to Mercom’s India Solar Project Tracker, Canadian Solar won bid to develop the 80 MW grid-connected solar project by participating in a 450 MW solar tender by Solar Energy Corporation of India (SECI) under the viability gap funding (VGF) program under National Solar Mission (NSM) Phase-II, Batch-IV, Tranche-III. In September 2016, Canadian Solar quoted a VGF of ₹1.999 million (~$30,561)/MW along with a fixed tariff of ₹4.43 (~$0.068)/kWh to develop the project. Mercom previously reported, Canadian Solar entered into power purchase agreement (PPA) with SECI for a 25-year period.

The company is involved in developing build-to-sell projects across the globe. According to the company, total revenue for the fourth quarter of 2017, which includes revenue from both of solar module sales and from energy business, is expected to be in the range of $1.77 billion to $1.81 billion. Revenue will be affected if some of the project sales slip to 2018.

This sale points to a growing trend of consolidation activity in Indian solar sector.

In the first three quarters of 2017, the Indian solar sector saw almost $4.2 billion (~₹272 billion) in announced corporate, project funding, and M&A deals, according to the recently released Solar Funding and M&A Report by Mercom Capital Group. By comparison, $2 billion (~₹129 billion) was reported in the same period in 2016.

Image credit: Mercom India