Welspun Renewables Energy Limited, a subsidiary of leading power project developer Welspun Energy, has signed an agreement to build a 100 MW solar photovoltaic power project in a southern Indian state.
Following an agreement with the state government of Andhra Pradesh, Welspun Renewables will set up a 100 MW solar PV project. The company joins several others which have recently signed memoranda of understanding to set up large-scale renewable energy projects across various states in India.
Welspun Energy had recently signed an agreement with the state government of Gujarat to invest $1.3 billion to set up 1.1 GW of solar and wind energy capacity. Suzlon Energy has also signed a similar deal to install 3 GW wind and and solar energy capacity with an investment of $3.7 billion.
The trend to sign bilateral agreements to set up renewable energy projects has grown in the Indian market following the change of government and subsequent significant improvement in regulatory and financial certainty. The auction route has become extremely competitive as companies from sectors apart from power are also looking to develop solar power projects. This has led to solar PV tariffs falling to a third of the level they were in 2010.
Welspun Renewables currently operates the largest solar power project in India. The 151 MW photovoltaic (PV) project is located in Madhya Pradesh and was secured by the company through competitive bidding. Soon after the project was commissioned, GE Energy Financial Services made an equity investment in the project worth $24 million. The Asian Development Bank owns 13.3% stake in Welspun Renewables which it secured following an investment of $50 million.
Image Credit: Welspun Renewables Energy Limited
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