AgenciesDespite a host of regulatory and legal issues challenging the Indian renewable energy industry, international investors remain keen on investing in Indian projects, a top executive at Norwegian renewable energy developer Scatec said.
Scatec recently bought into 50% of a 900 MW project by Acme Solar in Rajasthan, scheduled for completion in 2022. Although financial details of the investment were not released, ET has understood that Scatec invested $50 million for the deal.
"We do see India as a market that has significant potential for us," Terje Pilskog, executive vice president of project development at Sctatec, told ET.
"We believe that the economic interest and opportunities in India are at a good place to start engaging. We're very enthusiastic about the targets and ambitions that India has on the renewable energy fronts," he added.
Speaking from Oslo, Pilskog said that Scatec has been eyeing the Indian market for a few years now, but ultimately went ahead with this project because of Acme's past experience with international players.
This was the first foray by a foreign entity into India's renewable energy sector after SoftBank's SB Energy sold off its assets in India at a low valuation to , as SB's projects remain stuck in regulatory and economic turmoils.
Currently, Scatec has a global capacity of 3.5 gigawatts (GW) in renewable energy projects. The company wants to achieve a portfolio of 15 GW by 2025, and plans on achieving that goal through further investments in India, Pilskog said.
"Within that target of 15 GW, we see India holding a potential of several gigawatts for us," he said, but did not specify any investment figures that Scatec has set aside specifically for India, adding that all of their consideration will take place on a project-by-project basis.
While Scatec is looking at other Acme's projects, it won't restrict itself to them and is in talks with other players as well, the EVP said, without disclosing any names.
"We will look at organic growth and continue to look at partnerships, similar to what we've done with Acme," said Pilskog.
When Acme won the project in 2018 at a tariff of Rs. 2.44, it was the then record-low price for solar power projects in the country. Last year, Acme unilaterally pulled out of the projects using the force majeure clause, citing delays due to Covid-induced lockdowns.
However, last week Acme withdrew their termination, after Scatec's investment was announced.
Scatec recently bought into 50% of a 900 MW project by Acme Solar in Rajasthan, scheduled for completion in 2022. Although financial details of the investment were not released, ET has understood that Scatec invested $50 million for the deal.
"We do see India as a market that has significant potential for us," Terje Pilskog, executive vice president of project development at Sctatec, told ET.
"We believe that the economic interest and opportunities in India are at a good place to start engaging. We're very enthusiastic about the targets and ambitions that India has on the renewable energy fronts," he added.
Speaking from Oslo, Pilskog said that Scatec has been eyeing the Indian market for a few years now, but ultimately went ahead with this project because of Acme's past experience with international players.
This was the first foray by a foreign entity into India's renewable energy sector after SoftBank's SB Energy sold off its assets in India at a low valuation to , as SB's projects remain stuck in regulatory and economic turmoils.
Currently, Scatec has a global capacity of 3.5 gigawatts (GW) in renewable energy projects. The company wants to achieve a portfolio of 15 GW by 2025, and plans on achieving that goal through further investments in India, Pilskog said.
"Within that target of 15 GW, we see India holding a potential of several gigawatts for us," he said, but did not specify any investment figures that Scatec has set aside specifically for India, adding that all of their consideration will take place on a project-by-project basis.
While Scatec is looking at other Acme's projects, it won't restrict itself to them and is in talks with other players as well, the EVP said, without disclosing any names.
"We will look at organic growth and continue to look at partnerships, similar to what we've done with Acme," said Pilskog.
When Acme won the project in 2018 at a tariff of Rs. 2.44, it was the then record-low price for solar power projects in the country. Last year, Acme unilaterally pulled out of the projects using the force majeure clause, citing delays due to Covid-induced lockdowns.
However, last week Acme withdrew their termination, after Scatec's investment was announced.
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