India is expected to be one of the countries with highest renewable energy (RE) growth globally in the coming years. With its strong economic growth and the population of 1.3 billion, the requirement of energy in India enormous. Currently it has an installed capacity of approximately 135 GW of RE contributing to 35% of energy mix. India has aggressive plans to ramp up renewable capacities and targeting +200 GW of new RE capacity by 2030 through a combination of technologies. Expected investment returns have improved over the last couple of years and India is therefore becoming an attractive renewables market.
Scatec is working on several project opportunities in the country with experienced local players and sees opportunities to offer various large-scale solutions across technologies, both based on federal and state tenders, as well as through entering into direct PPAs with corporate off-takers.
Scatec’s first project in India is located in the state of Rajasthan, on the north-western side of the country. The project holds a 25-year PPA with Solar Energy Corporation of India (SECI) secured in a tender in 2018. The estimated total capex for the project is 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 and 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.
Construction is expected to start in 2021 with scheduled completion in 2022.