Suzlon, an Indian wind and renewable energy company, announced that it will develop 45 MW of solar projects in Telangana, in partnership with Unisun Energy (15 MW) and Canadian Solar (30 MW). The company recently won bids to develop 210 MW of solar projects in Telangana through a competitive bidding process and signed the power purchase agreements (PPAs) in February 2016. The 210 MW includes a 100 MW project, a 50 MW project and four projects of 15 MW each.
Marking its entry into the Indian solar market, Canadian Solar, in partnership with Suzlon, will develop two solar projects of 15 MW each in Ramannapet and Kamareddy, Telangana. The PPAs have been signed for a 25-year period at a tariff of Rs.5.54 (~$0.083)/kWh. Canadian Solar will provide the solar PV modules, arrange project financing and contribute its technology expertise. The offtaker for the Ramannapet project will be the Telangana Southern Power Distribution Company and for Kamareddy project it will be the Telangana Northern Power Distribution Company (TSNPDCL). Suzlon will be responsible for project commissioning and operation and maintenance services for a period of 25 years. Canadian Solar will acquire 49 percent stake in Avighna Solar farms and Amun Solar farms, the special purpose vehicles (SPVs) setup by Suzlon for executing these projects.
“Canadian Solar is pleased to partner with Suzlon for the development of 30 MW solar power projects in Telangana,” said Steve Iyer, Vice President of Operations at Canadian Solar. “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.”
Suzlon, in partnership with Unisun Energy, will develop a 15 MW solar project in Bhainsa, Telangana. According to the contract signed between Suzlon Group and the Unisun Energy Group, the Unisun Energy Group will acquire a 49 percent stake in Vayudoot Solar Farms in August, through an SPV set-up by Suzlon for executing this project. Unisun Energy has the option to acquire the balance of the 51 percent stake in the Vayudoot project in the future. The offtaker for the Vayudoot project will be the TSNPDCL. Suzlon will be responsible for project commissioning and also operation and maintenance services for a period of 25 years. The project is expected to be commissioned in the financial year 2017. The PPAs have been signed at a tariff of Rs.5.51 (~$0.0825)/kWh.
According to Mercom’s India Solar Project tracker, Suzlon currently has 510 MW solar projects under development at an average tariff of Rs.5.36 (~$0.0803)/kWh. Apart from the 210 MW projects in Telangana, the company also has projects under development in the states of Jharkhand (175 MW), Maharashtra (70 MW) and Rajasthan (60 MW). Out of their total project portfolio, PPAs have been signed for 340 MW, with the projects in Jharkhand yet to sign PPA.
Image credit: By Pacific Southwest Region from Sacramento, US (Solar Panels at Topaz Solar 5) [CC BY 2.0 (http://creativecommons.org/licenses/by/2.0) or Public domain], via Wikimedia Commons
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.