Khosla Ventures-backed SunBorne Enters Indian Solar PV Market,Plan 500MW capacity by 2015
SunBorne Energy, a Kholsa Ventures-backed company and Suntech Power Holdings Co. Ltd., the world’s largest producer of solar panels have entered into an agreement for the supply of 100 MW solar panels for solar PV projects in India over the next two years. The agreement includes an initial order of 10 MW for a project in Gujarat, India.
“We chose Suntech because of their clear technology leadership and long-term commitment to India,” stated SunBorne Energy Managing Director and CEO James Abraham. “We are proud to support the Gujarat government in their endeavor to bring clean power to India and attain energy security.”
According to the agreement, Suntech will supply 280 Watts polycrystalline modules for Indian solar PV projects and SunBorne will provide turnkey services including design, installation and commissioning of the power plants. The deal is worth about $150 million, according to Gagan Vermani, Chief operating officer.
SunBorne is developing Utility Scale Solution Plants in Gujarat, Rajasthan and Andhra Pradesh with other States in the pipeline. It aims to deploy 20 percent of the Solar Mission target in the next decade.
India’s leading investment bank and project advisor, SBI Capital Markets Ltd. is expected to arrange a deal for providing loan worth of $ 34 million from three banks for the development of first power plant of SunBorne in India.
The move assumes significance in the wake of National Solar Mission, which calls for 20GW of solar installed by 2022, 2,000 MW of off-grid solar applications including 20 million solar lights by 2022. As the mission gathered momentum, collaborations and joint ventures between Indian and foreign players have taken shape to achieve ambitious targets for the promotion of solar energy in India.
The Indian Renewable Energy Development Agency (IREDA) supports the development of solar power generation in India by granting soft low-interest loans for solar power expansion, for introduction of advanced technologies and for use as working capital. IREDA has signed agreements with several banks in Europe and Japan to get loans worth millions of dollars at low interest rates.
SunBorne is also planning a 5 MW power project in the resource rich state of Rajasthan. The company plans to install solar PV generation capacity of 500 MW by 2015. The company can consider several attractive ways of earning revenues like the National Solar Mission or the Renewable Energy Certificate scheme or the solar policies announced by individual states.
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