Scatec has entered a partnership with ACME, a solar developer in India, to realise a 900 MW solar power plant in the state of Rajasthan, India. The project holds a 25-year PPA with Solar Energy Corporation of India (SECI) secured in a tender in 2018.
“We are excited to partner with ACME, a leading solar power developer, on our first project in India. The country is targeting a significant growth in 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,” says Raymond Carlsen, CEO of Scatec.
“We are very happy to have Scatec as our partner in India and look forward to build 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 government of India to investors and renewable companies globally. ACME brings value of local expertise, indigenous and cutting-edge technology to execute large scale projects at affordable prices,” says Manoj Kumar Upadhyay, Founder and Chairman of ACME group.
The project has an estimated total capex of USD 400 million, with 75% debt financing from an Indian state-owned lender. Scatec will hold a 50% economic interest in the project, while ACME will retain 50%. ACME will be the turn-key EPC (Engineering, Procurement and Construction) provider for the project. Scatec will ensure delivery according to international standards, HSSE and E&S, as well as optimisation of engineering, procurement and operations of the plants. The annual production from the plant is expected to be 1,600 GWh.
“Scatec targets 15 GW capacity by the end of 2025 and expects India to be a key market in the years to come. This transaction is an important milestone to position Scatec for future growth in the Indian market. 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,” says Carlsen.
Construction is expected to start in 2021 with scheduled completion in 2022.