Under the terms of the joint venture, Ostro Energy will acquire a 49% stake in Prathamesh Solar Farms, a special purpose vehicle created by Suzlon for this project. Ostro will also have the option to take over the remaining 51% in the future.
With the governments thrust on renewables, and the government target to build 100 GW of solar energy projects by 2022, this is the right time for us to foray into solar energy, says Ranjit Gupta, Ostro Energy CEO. This joint venture is a significant step for the company, aligned to our vision to be a 1000 MW company in India by 2018.
The project is funded by 75% debt and 25% equity. Generated power will be purchased by Telengana Southern Power Distribution Company, with Suzlon responsible for the plants operations and maintenance over the plants 25 year operational period.
Both companies are newcomers to Indias solar sector; in fact this will be Ostro Energys first move into the industry. Suzlon is in its first year of solar operations, having entered the market back in January, winning the tender for 210 MW of projects in Telangana.
Formerly one of the worlds five largest wind developers, the company has used its success with wind to expand into solar, with a pipeline of more than 500 MW. The partnership with Ostro is the fourth set up by Suzlon this year, other partners include Unisun Energy (15 MW), Canadian Solar (30 MW) and CLP India (100 MW).
Today, the renewable energy sector is witnessing a positive momentum, states Suzlon Group CEO J.P Chalasani. We look forward to continuing our partnership with Ostro and thereby contributing to the countrys energy security.