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India has become a land of rising opportunities in solar energy sector. After the global companies like SoftBank Corp, Enel Green Power, EDF etc. expressing their interest to expand in the Indian renewable energy market, it is now Finland based Fortum Corp., who has decided to invest €200-400 million (Rs. 1,500-3,000 crore) in India’s solar energy market.
Based in Finland, Europe Fortum Corp. is engaged in the generation and sale of electricity, operation and maintenance of power plants and also provides other energy-related services. The firm is looking at the Nordic and the Baltic countries, Russia, Poland and India as its key markets. Fortum already has 15 MW of solar capacity in India. It also won a reverse auction for a 70 MW project this January, with a fixed tariff for 25 years. The firm will also be bidding for an additional 100 MW this month, in the country.
India will be the first country where Fortum has decided to invest, given the country’s huge potential solar resources and the pro-solar government. India also has an ambitious 100GW solar installation target by 2022. This has already led to massive foreign investments in this sector in India. India has also improved its “Ease of doing Business” rankings in India.
A lot of foreign companies have shown an interest in the developing solar market in India. These companies are rapidly expanding in India to access the untapped potential in the country. India is a hot country and receives huge amount of solar radiation. Rising power problems and pollution issues make solar installations the top priority for India. Another important reason for the increased foreign interest in India is dollar based tariff bidding, introduced by MNRE to reduce foreign exchange risk and encourage foreign investment in this sector.
“India offers one of the best solar resources and a sound government support for the development of solar sector. The country provides a good platform for Fortum to further develop its business in solar also elsewhere,” the company said in a statement.
Source: Business Standard