MUMBAI: Hong Kong-based CLP Group has forayed into the Indian solar energy market by acquiring 49% stake in Suzlon EnergyBSE 1.43 %’s 100 MW project in Telangana, with the option to acquire the balance stake later. India’s solar energy sector has seen record capacity additions, with tariff bids for new projects falling to unprecedented lows, as the government is pushing hard to achieve the ambitious target of 100,000 MW of grid-connected solar power by 2022.
CLP India, which lost out to competition in these bids, has managed to grab a share of the growing pie with this deal. ET had first reported the deal on May 30. “Given the global commitment to cleaner energy, it is obvious that at some point in future a company like CLP will be making only clean investments,” Rajiv Mishra, managing director, CLP India, told ET.
“That’s the direction but for now, we thought we’d probably invest 50:50 in conventional and renewables. For this, our strategy was an identification of the primary growth market and the choice was China and India,” he said. The two companies did not disclose the deal size. The Rs 800-crore project needs Rs 150 crore of equity and the rest will be financed through debt.
While CLP India and Suzlon will develop the project at Veltoor in Telangana in a joint venture, under a special purpose vehicle called SE Solar, CLP India will have the option to acquire the balance 51% stake later. CLP India’s renewable energy business in India was so far focused on wind power .
