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LONDON (Alliance News) - OPG Power Ventures PLC on Tuesday said it has invested GBP45.0 million in four new solar projects in Karnataka, in the south west of India, as part of its ongoing growth strategy.
The developer and operator of power generation facilities said together the facilities generate 62 megawatts in solar power, and noted that the projects were secured in a competitive bidding process.
OPG Power added that its investment will be funded from a combination of internal cash generation and debt, and expects all four projects to be generating cash flow by June 2017.
As part of the deal, OPG Power said it signed long-term, 25-year power purchase agreements for the sites with Karnataka Power Corp. The targetted return levels are expected to be met without any subsidies being available.
This, OPG said, was in line with its strategy announced in June 2015, to increase its focus on renewable energy as a result of the improved attractiveness of projects, in particular in the solar energy segment.
"We have started our next phase of growth with a clear strategy that we believe could be a significant contributor to the growth in OPG's future earnings. In fact, I believe adding low risk solar generation capacity that is sold forward into the long term is significantly beneficial to the quality and robustness of our asset base and earnings. Such quality of growth reflects OPG's continued commitment to being a leading developer and operator in the growing Indian energy sector," said Chief Executive Arvind Gupta.
Shares in OPG were flat at 60.25 pence on Tuesday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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