Canadian Solar, one of the biggest solar power companies in the world, made its first investment in India’s alternative energy sector by acquiring 49% stake each in two projects of Suzlon Energy in Telangana for an aggregate amount of Rs 26.4 crore. The Nasdaq-listed company, with a market capitalisation of $880 million, has the option to buy the rest of the 51% stake in each of Suzlon’s 15-megawatt projects one year after they turn commercially operational.
Suzlon on Wednesday also sold a 49% stake in another 15-megawatt project in Telangana to Shanghai-based Unisun Energy for Rs 13.5 crore. Unisun, too, has the option to buy the remaining 51% stake in the project, Vayudoot Solarfarms, in future. The two solar power units that Canadian Solar acquired in Telangana are expected to be commissioned next fiscal and debt financing will cover 80% of the costs. Canadian Solar, according to the deal inked with Suzlon Energy, will arrange the financing for these projects. Canadian Solar has routed its investment in these projects — Avighna Solarfarms and Amun Solarfarms — through its Singapore arm. The transaction will boost Canadian Solar’s global project pipeline, which currently stands at 2.4 gigawatts, said the company’s vice-president (operations) Steve Iyer.