Suzlon sells 49% each in 3 Telangana solar projects to Canadian, Chinese investors

Suzlon on Wednesday announced the sale of 49 per cent stake each in two 15 mega Watt projects in Telangana for an aggregate amount of Rs26.4 crore. Suzlon has also sold a 49 per cent stake in another 15-MW project in Telangana to Shanghai-based Unisun Energy for Rs13.5 crore.

Canadian Solar bought a 49-per cent stake in Avighna Solarfarms and Amun Solarfarms has the option to acquire the remaining 51-per cent in the two farms. Similarly, Unisun Energy which acquired a 49-per cent stake in Vayudoot Solarfarms, also has the option to acquire the remaining stake in the wind farm.

For Nasdaq-listed Canadian Solar, one of the biggest solar power companies in the world, this is its first investment in India's alternative energy sector.

The company, with a market capitalisation of $880 million, has the option to buy the rest of the 51% stake in each of Suzlon's 15-mega Watt projects one year after they turn commercially operational.

The two solar power units that Canadian Solar acquired in Telangana are expected to be commissioned next fiscal and debt financing will cover 80 per cent of the costs. Canadian Solar will arrange the financing for these projects.

The company has routed its investment in these projects - Avighna Solarfarms and Amun Solarfarms - through its Singapore arm. The transaction will boost Canadian Solar's global project pipeline, which currently stands at 2.4 giga Watts, said the company's vice-president (operations) Steve Iyer.

The two projects have power purchase agreements with Telangana government at a fixed rate of Rs5.54 per kilo Watt hour for 25 years. The state's power distribution outfits - Telangana Southern Power Distribution and Telangana Northern Power Distribution - will buy the electricity from the two units.

Earlier this year, Suzlon Energy had won 210 mega Watts of solar projects in Telangana through competitive bidding and signed power-purchase agreements in February.

The part-sale of the two 15-megawatt projects is in line with the Tulsi Tanti-led company's strategy to hold lesser number of assets. Suzlon Energy now prefers to build and sell solar assets rather than own and operate them.

In June, Suzlon had sold a 100-megawatt solar project, also in Telangana, to Hong Kong-listed CLP Holdings for Rs73.5 crore.