Areva to invest $3 billion in Indian solar projects
The business group is holding talks with at least two financial institutions that are as yet unnamed, with an aim to float two subsidiaries to establish solar programs generating 1,000 megawatts MW over the coming five to seven years.
India's Jawaharlal Nehru National Solar Mission JNNSM program aims to increase grid-connected solar power from the current 3 MW up to 1,000 MW by 2013 and to 4,000 MW by 2017.
However, Areva's plans come outside the JNNSM program and will be developed under power purchase agreements PPA with Indian state governments. The company is looking at establishing four projects, each with a 250-MW generating capacity, in Gujarat, Rajasthan, Madhya Pradesh and Maharashtra, and is in discussions with these state governments.
Areva will not wait for all the PPAs to be in place before starting the projects. Rather, as soon as the first PPA is signed, work will begin.
Estimates of the investments required to generate 1 MW of solar electricity are about $3 million, leading to a total investment requirement of $3 billion for a planned total of 1,000 MW. An announcement on the tie-up with the financial institutions is expected to be made after six months.
Areva has been involved with renewable energy forms in India since 2004 and has completed five turnkey biomass power plants to date. In 2009, Areva formed a joint venture with Astonfield Renewable Resources Limited, a member of the Astonfield Group, to construct 100 MW of biomass power plants across India.
In addition to the investments planned in the four solar projects, Areva is also planning to establish an engineering, procurement and construction joint-venture company with an Indian partner to construct turbine components and "solar islands," which are artificial membranes for holding extra-flat concentrating panels that can be turned to follow the sun using simple means.
The CEO of Areva Renewable Energies, Anil Srivastava, describes the division of the proposed joint venture company as follows, "We will do the solar island and turbine, they will do the balance of plant and civil work. Our objective is to go to the market and offer the customers a fixed price turnkey for building the power plant and for operations and maintenance."
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