Under the deal, CLP India also has the right to acquire the remaining 51% stake in the project company SE Solar in the future.
Earlier this year, Suzlon won the right to sign power purchase agreements (PPAs) for six solar projects in Telangana with a combined capacity of 210MW.
The contracts, including for the project in Veltoor, were signed in February this year.
The solar power plant in Veltoor is expected to be commissioned before May 2017. It will be financed by 80% debt and 20% by equity.
Telangana Southern Power Distribution Co will buy the energy generated from the plant at a fixed tariff of $0.083 per kWh over a period of 25 years.
CLP India believes that Veltoor solar project will act as an important contributor for its expansion in India. The project will also help in meeting its target to have at least 20% of its portfolio in renewables by 2020.
CLP India managing director Rajiv Mishra,, said: "Our approach to the market revolves around the kind of opportunities available as well as the prevailing policy framework.
"We have been keen to invest in solar in India to complement our Wind portfolio, and have evaluated projects that will be value-enhancing for our shareholders, whilst being attractive for our customers.
"The Veltoor solar project meets both the criteria. We believe that the state of Telangana has a favourable solar policy, which creates a conducive environment for us. We remain keen and will continue to explore such projects to expand our renewable energy footprint in Telangana and across India."
CLP entered the Indian market in 2002 and presently has a generation portfolio exceeding 3GW.
The company’s wind and solar capacity, both operational and committed, amounts to 1.1GW. CLP recently a memorandum of understanding (MoU) with the Haryana government to build a 132MW solar plant at its Jhajjar power station.
Image: Suzlon Group and CLP India to develop 100MW solar project in Telangana, India. Photo: Courtesy of franky242/ FreeDigitalPhotos.net.
