Renewable power developer SunEdison has signed a memorandum of understanding (MoU) with the government of Karnataka, a state in India, for the development of 5GW of renewable energy projects over the next five years.
Under the deal, the energy firm will offer its technology expertise along with financing to set up a mix of solar photovoltaic (PV) and wind power facilities in the state.
The MOU includes an immediate plan to implement 1GW to 1.5GW of power by December 2016.
Local distribution companies and utilities will buy the renewable power generated from the projects through power purchase agreements (PPAs).
The state government will explore location options with SunEdison for construction of the project, its infrastructure, and connections to the grid.
SunEdison Asia-Pacific president Pashupathy Gopalan said: "We are proud to be working with the government of Karnataka to progress its renewable energy goals.
"Karnataka’s comprehensive energy policy paves the way for socially and environmentally responsible economic growth and prosperity by addressing the energy needs of utility customers, distributed generation customers, and farmers who can benefit from solar water pumps for irrigation."
Once operational, the projects are expected to ease the state out of its power shortage problems, and reach out to those who lack adequate access to electricity at present.