Indian investors forge alliance for solar power projects
Sunday, 8 May 2011
AHMEDABADNEW DELHI, May 7 (Economic Times): Lack of prior experience and equity in the capital-intensive solar power sector is driving the Indian investors and EPC contractors to join hands with experienced cash-rich foreign players.
The National Solar Mission envisages installing 20,000 MW of generation capacity at an investment of about Rs 3 lakh crore in next one decade. Industry experts believe that at least a dozen of collaborations and joint ventures between Indian and foreign players have taken shape in just 12 months and the trend will continue in the sunrise solar power sector.
From zero presence of solar in Indian energy mix at least 2,000 MW of solar power generation capacity underway in the country. In Gujarat alone, government has entered into power purchase agreements (PPAs) with 83 developers to commission 958 MW of solar power generation capacity.
Central government's nodal arm for solar power trade National Vidyut Vyapar Nigam Limited, signed PPAs with developers in January for 620 MW of capacity.
Talking to the reporter, Electrotherm Immodo Renewables president Jose Luis Moya said, "Immodo has experience of setting up solar projects in parts of Europe and we find India as the next most promising destination for renewable energy business.
With the solar mission and initiatives in other states, the solar photovoltaic market inis growing at a very fast pace."
Mumbai-based PLG Power that is commissioning 40 MW of solar power project and related equipment manufacturing plants in Gujarat is in talks with Japanese and Italian companies for strategic alliances to access the proven technologies.
The company, part of Rs 35.0 billion PLG Group is in talks with international investors for private equity. Earlier, L&T's engineering construction and contracts division joined hands with Sharp of Japan for technology and equipments for its experimental solar power project.
Industry sources believe that long-term alliance might take concrete shape between the two in coming days.