Norway’s Scatec has signed an agreement to acquire a 50% stake in Indian developer Acme’s 900 MW solar power project in the Indian state of Rajasthan.
The project will be built with an estimated total CAPEX of US$ 400 million, with 75% debt financing from an Indian state-owned lender. Scatec will hold a 50% economic interest in the project, with Acme retaining the balance of 50%.
Acme will carry out turnkey engineering, procurement, and construction (EPC) work. Scatec will ensure delivery as per international standards of Health, Safety, Security and Environment (HSSE) and Environment and Social (E&S), as well as optimization of engineering, procurement, and operations of the plants.
Commissioning of the plant is scheduled for 2022.
When operational, the plant is expected to produce 1,600 GWh of electricity annually. The power generated will be supplied under a 25-year power purchase agreement with the Solar Energy Corporation of India (SECI).
The Rajasthan project with Acme marks Scatec’s first project in India and positions it for future growth in the Indian market.
“[India] is targeting significant growth in the renewable energy capacity by 2030 and is a key growth market for renewables. We have already established presence on the ground and are positioning for future tenders within solar, wind, and hybrids,” said Raymond Carlsen, CEO of Scatec.
Scatec targets 15 GW capacity by the end of 2025 and expects India to be a key market in the years to come. “We see opportunities to offer various large-scale solutions across technologies in India, both based on federal and state tenders, as well as through entering into direct PPAs with corporate off-takers. Our proven track record from renewables in emerging markets and solid partnerships will support our entry into the Indian market,” said Carlsen.
“We look forward to building a much larger portfolio of renewable energy projects with this partnership. This partnership is a testimony of the robust growth potential India offers with a plan to achieve 450 GW of renewable energy power by 2030, enabling policies, ease of doing business, and support by the government of India to investors and renewable companies globally. ACME brings the value of local expertise, indigenous and cutting-edge technology to execute large-scale projects at affordable prices,” said Manoj Kumar Upadhyay, Founder, and Chairman of Acme Group.
Headquartered in Oslo, Scatec develops, builds owns, and operates solar, wind, and hydropower plants and storage solutions. It has more than 3.5 GW in operation and under construction on four continents.
Acme has a cumulative portfolio of 5.0 GW, out of which 2.3 GW is operating and 2.7 GW under construction. The company aims to achieve an operating capacity of 25 GW by 2030.