CLP India, one of the largest foreign investors in the Indian power sector, recently announced that it was buying a 49 percent stake in a Suzlon group company, thus marking its entrance in solar energy with its first joint venture.
In this joint venture, a 100 MW solar project will be set up at Veltoor in Telangana's Mahbubnagar district, an investment of Rs 760 crore.
India is a primary growth market for CLP and Veltoor project will make an important contribution to the expansion plan, the Hong Kong-based company said.
CLP will have Suzlon’s assistance in reaching its target of generating 20 percent power by renewable energy by 2020.
A Power Purchase agreement has been signed with the Telangana Southern Power distribution company for commissioning the Veltoor unit starting from May 2017. The cost of power supply will be at a fixed rate of Rs. 5.59 a unit. ( kW/hour)
One of the leading investor-owned power businesses in Asia, CLP India covers renewable energy, supercritical coal and gas-fired power plants in its diversified generation portfolio which is over 3,000 MW.
In another such instance, CLP India signed an agreement with the Haryana government to set up a 132 Mw solar project at its Jhajjar power station. A 1,320 MW coal-fired power plant is operated and owned by CLP in Jhajjar, Haryana.
Tulsi Tanti, chairman and managing director, Suzlon Group, said: “Investments in both wind and solar have garnered traction owing to the improving cost competiveness enabled through technology advancements and the need to transition from a fossil fuel-dominated energy architecture. The target of 175 Gw of RE by 2022 outlined by the Government of India offers an opportunity of over 100 Gw in solar in the next six years.”
According to sources, the company’s interest in solar energy does not mean it would prefer this over wind energy and it will continue to invest in both.