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Spanish Firm Gestamp To Set Up 100 MW Solar Plant In TN

Spanish engineering and renewables major Gestamp plans to set up a 100 MW solar photovoltaic project in phases in Tamil Nadu, reports said.

Southern Solar Pvt Ltd, a joint venture of Gestamp and Chennai-based Zynergy group, will set up the first 25 MW by March. Gestamp has 70 percent stake in the joint venture. Typically, a solar project calls for an investment of Rs.9 crore per MW.

Group MD and CEO, Zynergy Rohit Rahindernath said the JV has acquired 500 acres in Madurai and Ramnad districts, adding that Southern Solar would prefer to sell the power it generates to industrial consumers directly.

It has signed MoUs with potential buyers for selling power from 10 MW of capacity and is in the process of negotiating the power purchase agreements with them. He was confident of firming up PPAs for 25 MW soon, and hence the initial phase of the project would be for that capacity.

He said that evacuation of power would not be a problem because was no transmission constraints in the areas Southern Solar would put up its projects.

On the tariffs that the Southern Solar would sell electricity at, he said industrial consumers were fine with paying Rs.9 and above per unit. Anything less would not make economic sense for the project developers. Any benefits that Southern Solar would get from trading in the renewable energy certificates could be shared with the buyer of the electricity.

Southern Solar would not be interested in 'reverse bidding' projects, where the tariffs are determined in a bid process, and are often as low as around Rs.8.

by RTTNews Staff Writer

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