Suzlon, a wind turbine manufacturer and renewable energy project developer, has entered into a joint venture with Ostro Energy, a wind energy project developer, for the development and construction of a 50 MW solar project at Wanaparthy, Telangana. The project is expected to be commissioned in financial year 2017, and marks Ostro Energy’s entry into the Indian solar sector.
Ostro Energy will acquire a 49 percent stake in Prathamesh Solar Farms, a special purpose vehicle (SPV) set up by Suzlon to execute this project and has the option to acquire the remaining 51 percent stake in the future.
The off-taker for this project will be Telangana Southern Power Distribution Company (TSPDCL). Suzlon will be responsible for project commissioning and operation & maintenance (O&M) services for a 25-year period. The project will be funded with 75 percent debt and 25 percent equity.
Ranjit Gupta, CEO of Ostro Energy, said, “With the government’s thrust on renewables and the target to build 100 GW of solar energy projects by 2022, this is the right time for us to foray into solar energy. This joint venture for our first solar project in Telangana is a significant step for the company towards a balanced energy portfolio. This is aligned to our vision to be a 1,000 MW renewable energy company in India by 2018.”
Suzlon Group CEO J.P. Chalasani, commented, “Today, the renewable energy sector is witnessing a positive momentum. The sector is committed to provide sustainable and affordable energy for all. We believe if India’s renewable potential is unlocked, it can transform the country’s energy architecture to be dominated by clean energy sources. We look forward to our continuing partnership with Ostro and thereby contributing in the country’s energy security.”
In January 2016, Suzlon won bids to develop 210 MW of solar projects in Telangana through a competitive bidding process and signed power purchase agreements (PPAs) in February 2016. This is the fourth project that Suzlon has set up with partners in Telangana. Mercom had recently reported that Suzlon will develop 45 MW of solar projects in Telangana, in partnership with Unisun Energy (15 MW) and Canadian Solar (30 MW). The company is also developing a 100 MW project with CLP India.
According to Mercom’s India Solar Project tracker, Suzlon currently has 515 MW solar projects under development at an average tariff of Rs.5.36 (~$0.0803)/kWh. The company does not have any operating projects so far.
Image Credit: Suzlon