Suzlon JV marks debut Indian investment for Canadian Solar
Suzlon has linked with global Tier 1 PV manufacturer Canadian Solar to advance 30MW of Indian projects, in a partnership that marks the latter's debut investment in the country's solar market.
Under the joint venture tie-in with Canadian Solar, the module group will take a 49% equity stake in two special-purpose vehicle (SPV) companies – Avighna Solarfarms and Amun Solarfarms – set up by Suzlon to execute 15MW installations at Ramannapet and Kamareddy in the state of Telangana.
Canadian Solar will provide its PV modules, arrange project financing and contribute its technology expertise, said a statement from the two.
Suzlon's move into solar comes after the company – a pioneer of India's wind power sector – won capacity in Telangana as part of 2GW of state-backed PV tenders earlier this year.
Suzlon initially plans to install PV projects aggregating 210 MW at six sites across the southern Indian state.
It signed six 25-year Power Purchase Agreements (PPAs) in February with the state utility, Southern Power Distribution Company of Telangana (TSSPDCL) at 5.54 rupees/kWh ($ 0.083/kWh).
The projects include one of 100MW, one of 50MW and four of 15MW each.
A similar joint venture with China's Unisun Energy Group has also been inked in relation to another of the 15MW projects in Telangana, located at Bhainsa, Adilabad District.
Unisun will acquire a 49% stake in the Vayudoot Solarfarms SPV with a further option for a 100% stake in the future.
All the projects are due to be commissioned in 2016-2017 financial year. Suzlon will be responsible for project commissioning and operation and maintenance services for a period of 25 years.
Suzlon group CEO JP Chalasani said: "Solar complements our existing strengths, infrastructure and experience in wind and we will leverage the same for executing solar projects."
Steve Iyer, vice president of operations at Canadian Solar, said: "These projects mark our first investment in the Indian solar sector", although the company's modules already feature in the 25MW Gajner Bikaner solar project in Rajasthan, for example.
Suzlon emphasised the potential impact of new solar on its financial balance sheet in its latest results with 100 GW solar target being pursued by the Indian government by 2022.