Norway's Scatec Enters Indian Market; Partners ACME To Develop Solar Power Project

Norwegian renewables player Scatec has entered the Indian market by signing a pact with ACME for setting up a 900 MW solar power plant in Rajasthan.

The project will have a 25-year PPA (Power Purchase Agreement) with Solar Energy Corporation of India (SECI) that was secured through a tendering process in 2018.

'Scatec has today entered a partnership with ACME, a leading solar developer in India, to realise a 900 MW solar power plant in the state of Rajasthan, India,' a release said on Thursday.

The estimated total capex for the project is USD 400 million, with 75 per cent debt-financing from an Indian state-owned lender. Scatec and ACME will have an economic interest of 50 per cent each in the project.

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 construction of the project is expected to start in 2021 with scheduled completion in 2022. The annual production from the plant is expected to be 1,600 GWh, as per the release.

'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 a presence on the ground and are positioning for future tenders within solar, wind and hybrids,' Raymond Carlsen, CEO of Scatec, said.

Manoj Kumar Upadhyay, Founder and Chairman of ACME group, said it is looking 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 to investors and renewable companies globally, he added.

According to Carlsen, 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,' he noted.

Scatec develops, builds, owns and operates solar, wind and hydro power plants and storage solutions. It has more than 3.5 GW capacity in operation and under construction in four continents and has more than 500 employees.

The company is targeting 15 GW capacity in operation or under construction by the end of 2025.

ACME has a portfolio of around 5 GW, out of which 2.3 GW is operational. 

(PTI)