- Agreement gives CLP option to purchase remaining 51 percent
- Suzlon sale in line with turnkey project development strategy
CLP Holdings Ltd.’s Indian subsidiary made its first investment in solar power, acquiring a 49 percent stake in a project developed by Suzlon Energy Ltd. for 735 million rupees ($11 million).
CLP India has an option to buy the rest of the 100-megawatt SE Solar project, according to a regulatory filing on Monday. The Hong Kong-listed company will focus on boosting solar power among its portfolio of wind assets over the next year or two, according to Mahesh Makhija, business development director for renewables at CLP India.
The SE Solar project is expected to be commissioned by May 2017 and debt financing will cover 80 percent of its costs. A power purchase agreement is fixed at 5.59 rupees a kilowatt-hour for 25 years. The state distribution company, Telangana Southern Power Distribution Company Ltd, will buy the electricity.
Suzlon won 210 megawatts of solar projects in the southern Indian state of Telangana through a competitive bidding process and signed power purchase agreements in February. The sale to CLP is in line with the Pune-based company’s focus project development.
“We are not owning any projects," Suzlon founder Tulsi Tanti told Bloomberg April 22 in an interview. His company seeks to “just build and sell” its solar projects.
Suzlon is seeking to replicate the turnkey project-development model its used for wind projects for solar, Tanti said. The company expects long run revenues of 10 percent from solar, he said.