Norwegian solar energy company Scatec has signed an agreement with ACME Group to co-develop a 900MW solar power plant in Rajasthan, India.
ACME and Scatec will hold equal ownership of the solar project, which is expected to incur a total capital expenditure of $400m and receive 75% debt financing from an Indian state-owned lender.
ACME will provide turnkey engineering, procurement and construction services for the project.
The project holds a 25-year power purchase agreement with Solar Energy Corporation of India (SECI), which was secured through a tender process in 2018.
Construction works at the site are expected to begin this year, with completion scheduled for next year.
Once operational, the project is expected to generate 1,600GWh of clean energy a year.
Scatec CEO Raymond Carlsen said: “The country is targeting significant growth in [its] renewable energy capacity by 2030 and is a key growth market for renewables.
“Scatec targets 15GW 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.”
ACME group founder and chairman Manoj Kumar Upadhyay said: “This partnership is a testimony of the robust growth potential India offers with a plan to achieve 450GW of renewable energy by 2030, enabling policies, ease of doing business and support from the Indian government to investors and renewable companies worldwide.
“ACME brings the value of local expertise, indigenous and cutting-edge technology to execute large scale projects at affordable prices.”
Scatec will ensure the delivery of the project is in line with international health, safety, security and environment (HSSE) and environment and social (E&S) standards.
The company will also optimise the plants’ engineering, procurement and operations.
The financial details of the deal have not been disclosed.
This week, Scatec secured preferred bidder status on 150MW of contracted solar capacity in a government tender in South Africa.
The preferred bidder status was awarded by the country’s Department of Mineral Resources and Energy under the technology-agnostic Risk Mitigation Power Procurement Programme (RMIPPP).