OPG Power Ventures Plc said its board has approved a GBP-45-million investment in four solar projects totalling 62 MW in the Indian state of Karnataka.
The London-listed company, which has 750 MW of operating thermal power assets in India, said the projects were secured in a competitive bidding process. OPG Power Ventures has signed 25-year power purchase agreements (PPAs) with Karnataka Power Corporation at an average tariff of INR 5 per kWh.
It expects to meet its targeted return levels without subsidies. All four project should be generating cash flow by June 2017.The company has set a target of building at least 300 MW of solar projects in India in the next three years. It says the solar segment is attractive due to the falling costs and improving performance of solar panels, as well as improving project financing conditions.