Indian subsidiary of French major, Solairedirect plans to invest Rs 4,000 crore to become 400 MW company in next 5 years.
Driven by the will to harness India's massive solar potential, Solairedirect Energy India is planning to invest nearly Rs. 4,000 crore for funding its target of becoming a 400 MW company in the next five years. On sourcing of funds, Mr. Gaurav Sood, MD, Solairedirect Energy India said it would be a combination of debt and equity, the ratio of which is expected to be around 75:25. However, it may vary depending upon the project financials, cost of debt and cost of equity. The solar power producer is a subsidiary of the French solar major Solairedirect, which entered the country last year, and provides end-to-end solar energy solutions for turnkey projects, including project development and engineering, construction and installation, financing, operation and maintenance.
Driven by the will to harness India's massive solar potential, Solairedirect Energy India is planning to invest nearly Rs. 4,000 crore for funding its target of becoming a 400 MW company in the next five years. On sourcing of funds, Mr. Gaurav Sood, MD, Solairedirect Energy India said it would be a combination of debt and equity, the ratio of which is expected to be around 75:25. However, it may vary depending upon the project financials, cost of debt and cost of equity. The solar power producer is a subsidiary of the French solar major Solairedirect, which entered the country last year, and provides end-to-end solar energy solutions for turnkey projects, including project development and engineering, construction and installation, financing, operation and maintenance.
To achieve the 400 MW target, the company will be signing PPA's under national and various state programmes.
However, according to Mr. Sood, major part of the growth would come by signing private PPAs with bankable off -takers outside these programmes. He informed that the company is already working on signing these private PPAs with corporate and large bankable off -takers. "We are in discussion with leading corporates and large energy users to supply them competitive solar power over a long period of time," he told PWI. Having established a successful business model in France, as an integrated player in the upstream value chain of the photovoltaic (PV) market, the company is all set to strengthen its roots in India.
Solairedirect has already won a 5 MW project in Rajasthan, under the Jawaharlal Nehru National Solar Mission ( JNNSM). The company bagged the order with an offered tariff of as low as Rs 7.49/ unit. The company explained that the secret to quoting such a low tariff was due to its bankable EPC contracts, best in class components, lowest possible regulatory risk, etc. This not only resulted in mitigating risks, but also lowering the return expectations of our investors. It is a major step towards building large scale solar power plants, supplying competitive solar power in the country. The Rajasthan project will be operational by December 2012 and Solairedirect will be using its expertise of designing, building and operating more than 120 MW projects in France. It will set up a state-of- the-art project in India using crystalline technology.
BANKING ON SOLAR POTENTIAL IN INDIA
India, as a tropical country, where sunshine is available for longer hours per day and in great intensity, is being seen as one of the most promising market for investing in solar technology. Though, it is currently costlier than other sources of power such as coal, the JNNSM aims to overcome the barrier sooner than later. The mission is a major initiative of the government of India and state governments to promote ecologically sustainable growth, while addressing India's energy security challenge. The objective of the mission is to achieve 20,000 MW power-generating capacity by 2022, and create conditions through rapid scale-up of capacity and technological innovation to drive down cost towards grid parity. It anticipates achieving grid parity by 2022 and parity with coal-based thermal power by 2030.
AREA OF EXPERTISE
Solairedirect has created a niche in photovoltaic installations, which includes solar parks and rooft ops. The company has shown expertise in the design, production and operation of solar PV rooftops, both for private houses and large industrial buildings. It is also involved in providing building and operating solutions. As an Independent Power Producer (IPP), Solairedirect undertakes power purchase agreements (PPAs), for offering competitive KWh price in the long run. As a provider of turnkey solar farms, the company's Engineering, Procurement and Construction (EPC) services include:
* Engineering assessment (validating designs) and selecting contractors
* Handling grid connection procedures
* Executing the construction plan according to a fi xed price
* Supervising testing and commissioning procedures
* Providing comprehensive set of guarantees (penalties, price adjustment mechanism, equipment guarantees) and taking out insurance
THE ROAD AHEAD
As an Independent Power Producer (IPP), Solairedirect aims to provide competitive kWh to the customers and strive to be amongst the leading solar PV IPPs in the country over the long term. The short-term goals encapsulate successfully building the initial projects and creating a portfolio of 300 to 400 MW solar PV projects in the country. The company will be working towards offering competitive solar power to private customers and providing bankable EPC services to companies and partner with them to build long-lasting energy assets.
However, according to Mr. Sood, major part of the growth would come by signing private PPAs with bankable off -takers outside these programmes. He informed that the company is already working on signing these private PPAs with corporate and large bankable off -takers. "We are in discussion with leading corporates and large energy users to supply them competitive solar power over a long period of time," he told PWI. Having established a successful business model in France, as an integrated player in the upstream value chain of the photovoltaic (PV) market, the company is all set to strengthen its roots in India.
Solairedirect has already won a 5 MW project in Rajasthan, under the Jawaharlal Nehru National Solar Mission ( JNNSM). The company bagged the order with an offered tariff of as low as Rs 7.49/ unit. The company explained that the secret to quoting such a low tariff was due to its bankable EPC contracts, best in class components, lowest possible regulatory risk, etc. This not only resulted in mitigating risks, but also lowering the return expectations of our investors. It is a major step towards building large scale solar power plants, supplying competitive solar power in the country. The Rajasthan project will be operational by December 2012 and Solairedirect will be using its expertise of designing, building and operating more than 120 MW projects in France. It will set up a state-of- the-art project in India using crystalline technology.
BANKING ON SOLAR POTENTIAL IN INDIA
India, as a tropical country, where sunshine is available for longer hours per day and in great intensity, is being seen as one of the most promising market for investing in solar technology. Though, it is currently costlier than other sources of power such as coal, the JNNSM aims to overcome the barrier sooner than later. The mission is a major initiative of the government of India and state governments to promote ecologically sustainable growth, while addressing India's energy security challenge. The objective of the mission is to achieve 20,000 MW power-generating capacity by 2022, and create conditions through rapid scale-up of capacity and technological innovation to drive down cost towards grid parity. It anticipates achieving grid parity by 2022 and parity with coal-based thermal power by 2030.
AREA OF EXPERTISE
Solairedirect has created a niche in photovoltaic installations, which includes solar parks and rooft ops. The company has shown expertise in the design, production and operation of solar PV rooftops, both for private houses and large industrial buildings. It is also involved in providing building and operating solutions. As an Independent Power Producer (IPP), Solairedirect undertakes power purchase agreements (PPAs), for offering competitive KWh price in the long run. As a provider of turnkey solar farms, the company's Engineering, Procurement and Construction (EPC) services include:
* Engineering assessment (validating designs) and selecting contractors
* Handling grid connection procedures
* Executing the construction plan according to a fi xed price
* Supervising testing and commissioning procedures
* Providing comprehensive set of guarantees (penalties, price adjustment mechanism, equipment guarantees) and taking out insurance
THE ROAD AHEAD
As an Independent Power Producer (IPP), Solairedirect aims to provide competitive kWh to the customers and strive to be amongst the leading solar PV IPPs in the country over the long term. The short-term goals encapsulate successfully building the initial projects and creating a portfolio of 300 to 400 MW solar PV projects in the country. The company will be working towards offering competitive solar power to private customers and providing bankable EPC services to companies and partner with them to build long-lasting energy assets.
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