Suzlon Signs Agreement with ReNew Power for Development of Wind Project in Karnataka
ReNew Power recently raised $352 million to be used for its expansion and loan-payment plans
Suzlon, a wind turbine manufacturer and renewable energy project developer, has bagged a repeat order of 96.6 MW from renewable energy project developer ReNew Power for the development of a wind project in the state of Karnataka.
According to Suzlon’s Bombay Stock Exchange (BSE) filing, the company will install 24 units of S97-120m and 22 units of S111-90m wind turbine generator (WTG) in Karnataka. The project is expected to be completed by March 2018.
The project is owned by Special Purpose Vehicles (SPVs) Rajat Renewables Ltd and Kanak Renewables Ltd., subsidiaries of Suzlon. These will be sold to Shruti Power Projects Limited, a subsidiary of ReNew Power, under the Shared Purchase Agreement (SPA) signed between the two renewable energy companies. Shruti Power will acquire the entire stake of these two SPVs for ₹0.14 million (~$2,196).
“This is part of the trade practice of forming SPVs for setting up of wind turbine projects and selling them to the customers,” Suzlon’s BSE filing stated.
For the development of the project, Suzlon has entered a Power Purchase Agreement (PPA) with Hubli Electricity Supply Company (HESCOM) and Gulbarga Electricity Supply Company (GESCOM).
Suzlon has agreed to provide the Operation and Maintenance (O&M) services for the wind project which will be developed on a turnkey basis.
Mercom previously reported that Suzlon Group generated revenue of ₹38.52 billion (~$587.24 million) in the first half of financial year (FY) 2017-18.
In December 2017, ReNew Power acquired a 100 percent stake in KCT Renewable Energy Private Limited (KCTREPL) from the Karm Chand Thapar (KCT) Group for over ₹10 billion (~$155 million). Recently, the company also raised ₹22.35 billion (~$352 million) to be used for its expansion and loan-payment plans.
In the Financial Year (FY) 2016-17, ReNew Power added a total of 1,056 MW of renewable energy capacity. The capacity included 430 MW of solar and 626 MW of wind power assets.
Ankita is an editor at MercomIndia.com where she writes and edits clean energy news stories and features. With years of experience in the news business, Ankita has a nose for news and an eye for detail. Prior to Mercom, Ankita was associated with The Times of India as a copy editor for the organization’s digital news desk. She holds a Bachelor’s degree in Psychology from Delhi University and a Postgraduate Diploma in journalism. More articles from Ankita Rajeshwari.