Hong Kong-based CLP Group has expanded its footprint in India by investing in the country’s rapidly growing solar power market.
According to media reports, CLP is in advanced negotiations with Suzlon Energy to acquire the latter’s 100 MW solar power project in the southern state of Telangana.
CLP may initially acquire a 49% stake in the project, and a year after commissioning, take a majority stake. The company may eventually completely buy out Suzlon Energy from the project.
Suzlon Energy is expected to continue providing EPC and maintenance services to the project. Suzlon Energy secured rights to develop 210 MW of solar power projects in Telangana through competitive auction. The largest of these projects – 100 MW – is expected to be commissioned by May 2017.
Suzlon Energy was once the largest wind turbine manufacturer in India in terms of annual capacity commissioned. Increased competition and poor financial decisions led to it being buried under huge debt. The company subsequently entered the solar power market to increase revenue.
Suzlon Energy has adopted the strategy of bidding for solar power projects, developing them, and then selling them off to interested buyers.
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