Indian Economy News

EDF unit forms Rs 7,500 crore JV with Indian group for developing wind assets

Mumbai: Global renewable energy company EDF Energies Nouvelles, a unit of French electric utility EDF Group, on Wednesday announced a joint venture with India’s SITAC Group for developing wind assets in India, marking its foray into India’s growing clean energy sector.

Under the equal joint venture, known as SITAC Management and Development Pvt. Ltd, the two companies plan to put up 1,000 megawatts (MW) of wind projects across India with an investment of Rs.7,500 crore over the next three to five years, the companies said in a joint statement.

Under the agreement, the two companies first plan to complete four projects in Gujarat with a total installed capacity of 142 MW by the end of this calendar year through a 25-year power purchase agreement (PPA) with Gujarat Urja Vikas Nigam Ltd, the statement said.

EDF Energies is a leading green electricity producer with 7,903 MW of gross installed capacity under wind and solar energy projects. It has operations in Europe and North America, and plans to grow its presence in emerging markets such as Brazil, South Africa and India.

SITAC, founded by Malvinder Singh, entrepreneur, has interests in real estate, infrastructure and renewable energy across Europe, the Middle East and Asia. The company has been operating wind energy assets in India since 2007.

India has a target of installing 100 gigawatts (GW) of solar power capacity and 60 GW of wind power capacity by 2022.

NuPower Renewables Pvt. Ltd, which is backed by Singapore’s Accion Capital Management Pte Ltd, Goldman Sachs-backed ReNew Power Ventures Pvt. Ltd, Morgan Stanley-owned Continuum Wind Energy Ltd, JP Morgan-backed Leap Green Energy Pvt. Ltd and Welspun Renewables Ltd are the prominent wind energy producers in India.

Suzlon Energy Ltd, Gamesa Wind Turbine Pvt. Ltd, WinWinD, Inox Wind Ltd, ReGen Powertech Pvt. Ltd are the leading wind equipment makers in the country.

India’s wind energy market is expected to grow at an annual rate of 20% over the next five years, helped by the government’s initiatives, restoration of fiscal incentives, and entry of large investors attracted by the returns on investment, which is at least 14% in IRR (internal rate of return) terms, according to a 17 December report by Maybank Kim Eng Securities.

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

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