France-based EDF Energy Nouvelles (EDF EN) has invested €155 million ($168.5 million) in New Delhi-based wind energy company SITAC RE Pvt Ltd, Malvinder Singh, chairman and founder of SITAC RE told DEALSTREETASIA.
The partnership will not affect the current management structure at SITAC RE.
EDF plans to appoint a CFO for its Indian operations later during the year.
SITAC mainly focuses on the development, financing, construction, ownership and operation of utility-scale wind energy projects in India.
“This is a 50:50 joint venture partnership for wind business in India. Sitac has been in the wind energy business since 2007 and developed 200mw of wind projects in the Indian market. EDF EN have 12 GW of renewable energy around the globe and now plan aggressive growth in India with an immediate investment of Euros 155 million and funds to follow to enable investment of 7,500 crore of projects,” Singh added.
This new partnership strengthens EDF Energies Nouvelles’ position in the Indian market. Since first establishing a presence in 2013 through ACME Solar its 25 percent-owned local subsidiary dedicated to solar PV, EDF Energies Nouvelles has commissioned 180 MW in total solar capacity and is building 132 MW in projects in Uttar Pradesh and Telangana, the company said.
In an email response, EDF’s spokesperson declined to confirm the investment.
The JV is meant for developing four projects with a total installed capacity of 142 MW in 2016 which aims to execute a minimum of 1000 MW in India in the next three to five years.
This is one of the 16 agreements signed at India-France Business Summit in Chandigarh on Jan 24, 2016. “The JV enables a sustainable model where assets are intended to be held for long term generation of power as a utility so it is not subject to the vagaries of the market, financial engineering,” Singh further said.
EDF EN is the renewable energy arm of EDF, the UK’s largest producer of low-carbon electricity. The company produces around one-fifth of France’s electricity from its nuclear power stations, wind farms, coal and gas power stations and combined heat and power plants. The company supplies gas and electricity to six million business and residential customer accounts and is the biggest supplier of electricity by volume in Great Britain.
SITAC RE (earlier known as Theolia Wind Power Pvt Ltd) was founded in 2006 and operates as a subsidiary of SITAC Ltd. The company is backed by Gujarat-based venture capital firm GVFL Ltd which invested Rs 40 crore in 2013 to develop 50 MW of windfarm in Phase-I in Gujarat.
India’s installed wind power capacity is expected to reach 89 GW by 2020 and 191 GW by 2030, according to a report by Global Wind Energy Council.
On Jan 27, PTC India arm, PTC Energy, awarded an order to Gamesa India for a 30 MW wind energy project in Madhya Pradesh. The project is expected to start by march 2016.