Siemens Acquires 46% Equity in Greenko’s Poovani Wind Project in Tamil Nadu
This is a Solar Energy Corporation of India’s project with a capacity of 200 MW
Greenko Group has signed an agreement with Siemens Financial Services (Siemens) for 46 percent equity investment in its 200 MW Poovani wind power project in Tamil Nadu. This is the first investment by Siemens in a wind farm in Asia.
Earlier, Siemens Gamesa Renewable Energy installed 100 units of SG2.0 – 114 wind turbines with a hub height of 106 m, and provided the infrastructure for the wind farm, including the supply, erection, and commissioning of the project.
“Attracting an equity investment from Siemens demonstrates the evolution of the Indian energy market with the inter-state transmission of renewable energy, the confidence of international financial institutions on the project & technical capabilities and the necessary regulatory frameworks to further support growth,” said Anil Kumar Chalamalasetty, CEO of Greenko Group.
The wind project is expected to reduce approximately 651,000 tons of carbon from the environment and electrify approximately 155,000 households annually. The project will be connected to the central transmission system of India, which will enable the inter-state flow of energy from a renewable resource.
Steffen Grosse, CFO of Siemens said, “Completing our first equity investment in renewables in the region further underscores our company’s commitment to bringing optimal energy solutions to India backed by innovative Siemens Gamesa Technology.”
In October 2018, Greenko Group entered into a definitive purchase agreement to acquire Skeiron Green Renewables. The deal has added approximately $200 million to Greenko’s EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) in the first full year after close, with further accretion and growth anticipated after that.
In June 2018, the company also acquired Orange Renewables in a billion-dollar deal. The deal was for an enterprise value of approximately $1.02 billion, which included $680 million of debt which would be taken over by Greenko from Orange. The equity infusion in the transaction was valued at approximately $340 million.
Nitin is a staff reporter at Mercomindia.com and writes on renewable energy and related sectors. Prior to Mercom, Nitin has worked for CNN IBN, India News, Agricultural Spectrum and Bureaucracy Today. He received his bachelor’s degree in Journalism & Communication from Manipal Institute of Communication at Manipal University and Master’s degree in International Relations from Jindal School of International Affairs. More articles from Nitin Kabeer