Suzlon forges JV with Ostro energy for 50 MW solar project

The Dollar Business Bureau

Suzlon group on Wednesday said it entered into a joint venture with Ostro Energy to develop and construct a 50 MW solar project in Telangana. 

According to the agreement signed between the Suzlon group and Ostro Energy on Monday, Ostro Energy shall acquire 49% stake in Prathamesh Solarfarms, a special purpose vehicle (SPV) established by Suzlon to execute this project. 

Ostro Energy has the option to acquire the remaining 51% stake in accordance with relevant rules and regulations. Telangana Southern Power Distribution Company will be the offtaker of this project. 

Suzlon will undertake project commissioning and also provide comprehensive operation and maintenance services for a period of 25 years. "The project is expected to be commissioned in financial year 2017 (FY17) and will be funded 75% by debt and 25% by equity," it said. 

Suzlon won a 210 MW solar projects in Telangana through a competitive bidding process and power purchase agreements (PPAs). The total project includes one project of 100 MW, one project 50 MW and four projects of 15 MW each. 

"With the government's thrust on renewables... this is the right time for us to foray into solar energy. This JV for our first solar project in Telangana is a significant step for the company towards a balanced energy portfolio. This is aligned to our vision to be a 1,000 MW renewable energy company in India by 2018," said Ostro Energy CEO Ranjit Gupta. 

"We believe that if India's renewable potential is unlocked, it can transform the country's energy architecture to be dominated by clean energy sources. We look forward to our continuing partnership with Ostro and contributing in the country's energy security," said Suzlon Group CEO J P Chalasani.