Suzlon, a wind turbine manufacturer and renewable energy project developer, has entered into a joint venture (JV) with AMP Solar, a global renewable power provider, to develop and construct a 15 MW solar project at Achampet in Telangana. The project is expected to be commissioned in the financial year 2017. AMP Solar will acquire a 49 percent stake in Rudra Solarfarms, a special purpose vehicle (SPV) built by Suzlon to execute this project for a cash consideration of Rs.140 million (~$2.06 million), and has the option to acquire the remaining 51 percent stake a year after the project is commissioned.
Suzlon will be responsible for project commissioning and operation & maintenance (O&M) services for a period of 25 years. The company signed a power purchase agreement with Telangana Southern Power Distribution Company for a 25-year period at a tariff of Rs.5.599 (~$0.082)/kWh in February 2016.
With the formation of the JV with AMP Solar, Suzlon, to date, has formed joint ventures to develop and construct the entire 210 MW capacity for which it had won bids in Telangana.
“The Indian renewables market is booming and this will be beneficial for our investors and shareholders,” said Pinaki Bhattacharya, CEO, AMP Solar (India), on the eve of the JV formation.
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 operational solar projects, to date.
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.