Adani Group, the India-headquartered multinational business conglomerate, has this weekend signed a memorandum of understanding (MoU) with Tamil Nadus state-run Generation and Distribution Corporation (TANGEDCO) to develop five solar PV plants with a combined capacity of 648 MW.
If successfully completed, the project would become one of the worlds largest solar power generation centers, and will be the result of a Rs 4,536 crore ($715 million) investment from Adani Group.
As per the terms of the MoU, TANGEDCO will sign a power purchase agreement (PPAs) for the plants solar energy at a price of INR7.01 per unit of electricity.
The MoU was signed in the presence of Tamil Nadus chief minister J Jayalalithaa, who remarked: "I am very happy to be here. I hope the project is successful and I hope Adani Groups partnership with Tamil Nadu will continue."
For TANGEDCO, the deal marks a further major step in its solar ambitions. The utility has previously signed PPAs for 436 MW of solar energy with 31 private developers.
A statement from TANGEDCO read: "The signing of the MoU between Adani Group and with the other private players will attract investments towards the generation of 1,084 MW of solar energy in the state."
Adani Groups own solar goal stands at 10 GW by 2022, and the group recently entered into a joint venture with the Rajasthan Government of India on the creation of a 10 GW solar park. Adani Group will commit to building 5 GW of the plants total capacity. This Adani Renewable Energy Park Rajasthan will require investment of more than $9 billion.
"This project will be Indias largest solar park and will also house manufacturing facilities to be set up under the countrys ambitious Make In India initiative," said Adani Group chairman Gautam Adani.
Adani Group recently signed an MoU with SunEdison to create a $4 billion solar panel fab in the Indian state of Gujarat.