Suzlon Group, an Indian wind turbine manufacturer, has announced its foray into the solar sector with 210 MW Letters of Intent (LOIs) from the state utility, Southern Power Distribution Company of Telangana Limited (TSSPDCL).
Suzlon won the projects through a competitive bidding process. The 210 MW of projects consist of six different capacity projects to be located across the state. This includes one project of 100 MW, one of 50 MW and four projects of 15 MW each. These projects shall be commissioned in FY 2016-17.
These solar projects will be built under 6 different Special Purpose Vehicle (SPVs), of which 1 is an existing subsidiary of Suzlon, while following 5 have been acquired (by acquiring 100% shareholding) and will be used as the proposed Solar SPVs for the project:
These acquired companies do not have any operations or assets currently and are acquired primarily to be used as SPVs for the proposed solar projects. The acquisitions have been made at the face value.
Suzlon will sign six Power Purchase Agreements (PPAs) with the state utilities for a 25 year period and will leverage its end-to-end clean energy solutions expertise to oversee the solar project from concept to commissioning.
In April 2015, the TSSPDCL invited bids for procuring 2,000 MW solar PV projects through a tariff based, competitive bidding process with a unique distributed generation model to utilize the substation capacities across the state.
Mr. Rohit Modi, Suzlon Energy CEO (International Operation and New Business), said:
“We are proud to partner with Telangana State Government in this opportunity for providing sustainable and affordable energy with a unique and cost efficient model of distributed power generation across the state. With our expertise in building renewable energy projects, we are geared to complete the project within the set timelines and look forward to strengthening our relationship with Telangana State. We look forward to sustaining our growth in the solar sector. This 210MW project will reinforce our commitment to execute tangible capacities in solar energy every year while expanding our footprint. Suzlon will develop these projects on a turnkey basis.”
Mr. Tulsi Tanti, Chairman Suzlon Group, said:
“Solar and wind are complementary, hence we will leverage our project execution capabilities and end-to-end solutions to deliver solar projects. With a strong backing of skilled workforce, excellent operations and maintenance service network, current infrastructure and 20 years of experience in building the wind business, I am confident that our maiden solar journey would be a success. It has further boosted Suzlon’s strong presence in renewable energy sector. We aim to contribute to the nation’s sustainable growth by offering clean energy solutions with innovative technologies and unique business model. We are also working on integrated renewable energy solutions by combining wind and solar projects at a single location.”