India’s Suzlon Energy Acquires 5 Companies To Boost Solar Power Project
Development
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.
Happy Investing
Source;Moneycontrol.com
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