Norwegian Scatec buys 50% of Acme’s 900 MW solar project in Rajasthan
Norwegian renewable energy player Scatec said on Thursday it had signed an agreement with state-owned Acme Solar for a 50% stake in the latter’s next 900 megawatt (MW) power generation assets in Rajasthan. Although financial details of the deal were not disclosed, Scatec said in a statement that “the project has an estimated total investment of $ 400 million (approximately 2,921 crore), with debt financing of $ 75 million. % from an Indian public lender “.
Acme will be the turnkey engineering, procurement and construction provider slated for completion in 2022, the statement added. The deal marks Scatec’s foray into the Indian renewable energy space and expects the country “to be a key market for years to come.”
“We see opportunities to offer various large-scale solutions across all technologies in India… as well as entering into direct power purchase agreements with corporate buyers,” said Raymond Carlsen, CEO of Scatec .
According to Shailendra Mohan Bebortha, representative of Scatec Solar in India, the assets include factories set up by Acme subsidiaries – Acme Raisar and Acme Dhaulpur. The two subsidiaries had quoted tariffs of Rs 2.44 / units in the first two auction tranches conducted by the Solar Energy Corporation of India (Seci) in 2018. Acme Raisar had even requested the termination of PPAs for 300 MW signed with Seci because of force majeure events such as the impact of the coronavirus epidemic, problems related to the acquisition of land and the delay in the construction of the associated transport network. “Currently the matter (PPA) is under review by the CERC and we expect a favorable outcome soon,” Bebortha added.
Experts pointed out that the deal is a “win-win” for both companies, saying that rather than canceling PPAs, it is better to offload part of your stake to raise funds and complete them. project work. “From a buyer’s perspective, since the projects suffered significant delays and the company wanted to cancel PPAs, it will get partial ownership of the assets at a reduced price,” an industry analyst told FE on condition of anonymity. Electricity for the Acme units, which have requested the termination of the PPA, is expected to be supplied to Delhi, Haryana, Bihar and Puducherry.