One of India’s largest renewable energy project developers has acquired solar power companies to give its solar plans a major boost.
Suzlon Energy has acquired 5 solar power companies which it may use as special purpose vehicles to execute under-development projects or bid for more projects in upcoming auctions.
The company already has 210 MW of solar power capacity under development. The capacity was secured by the company in the 2 GW Telangana solar power auction last year. Suzlon Energy will set up one project each of 100 MW and 50 MW capacity, and four projects of 15 MW capacity each. The company stated that these projects will be commissioned in FY2016-17, i.e. by March 2017. The projects will enter 25-year power purchase agreements with one of the state utilities.
Suzlon Energy may use these companies, which themselves have no assets under control, to participate in upcoming solar power auctions.
Suzlon Energy had announced its plans to make a foray into the expanding Indian solar power market in late 2014. The company had significant financial strain on its books, due to huge debt, and was facing competition in the wind energy market. With the government expected to withdraw some incentives for the wind energy sector soon, the company seems to have decided to switch to the solar power sector.
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