Indian Economy News

CLP India plans US$1 billion investment in solar energy

Mumbai: CLP India, one of the largest foreign investors in India’s power sector, is looking to enter the solar energy sector in India, a top company official said. The local unit of Hong Kong listed CLP Holdings is planning to invest about $1 billion for over one gigawatt (GW) solar power capacity over the next three-five years.

CLP India will bid for solar projects under the Jawaharlal Nehru National Solar Mission (JNNSM) and invest in projects won by others, said Mahesh Makhija, director of business development—renewables, in an interview on Friday. Among the companies it is talking to is Suzlon Energy Ltd, for a 100 MW project the latter won at a tariff of Rs.5.59 per kilowatt hour (kWh) in Telangana under the JNNSM in January.

“There are some good opportunities available in the market and we are looking at them actively,” he said. Suzlon did not immediately respond to an email query.

CLP India is one of the largest wind power developers in the country with a capacity of about 1,000 megawatts (MW) spread across six states and is the latest to announce an entry in the fast-growing solar energy market, which has in recent months seen overseas power firms, including Finnish utility Fortum, make large investment commitments.

“Solar has now become manageable in the country as far as the tariffs are concerned. With tariffs coming down we thought it was a good time to enter solar. Last couple of years we have been putting a lot of effort to bid for solar projects,” he said.

CLP Holdings, founded in 1901 as China Light and Power Co. Ltd in Hong Kong, is one of the two significant overseas entrants in India’s power generation sector, the other being US-based AES Corp.

CLP India also operates the 650 MW gas-fired Paguthan plant in Bharuch, Gujarat, and had signed an MoU (memorandum of understanding) with the Gujarat government to build a 1,000 MW imported coal-based power plant. It also operates a 1,320 MW coal-fired power plant in Jhajjar, Haryana. In 2015, CLP India said it would invest about $2 billion for expanding projects in the country.

India needs as much as $200 billion to meet its target to install 100 GW of solar power and 60,000 MW of wind power by 2022. This has seen global investors, including the renewable energy companies and pension funds, make a beeline for the country.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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