The agreement will enable Softbank to expand its portfolio and expedite plans to invest $1 trillion in India’s solar sector by 2030
SoftBank’s domestic arm SB Energy has reportedly signed a deal with Essel Infraprojects to jointly develop a 500 megawatt solar power plant in Rajasthan.
Though the details of the deal have not been released, it is said that the investment will help reduce the time needed to build the plant, from an estimated 12-15 months to less than six months.
The new agreement will enable Softbank Group to expand its presence in the Indian solar energy space and expedite plans to invest $1 trillion in India’s solar sector by 2030.
Softbank’s solar projects in India
SB Energy is the Softbank’s joint venture with Bharti Enterprises and Taiwan’s Foxconn Technologies. In June 2015, the three companies had joined forces to form SBG Cleantech (later changed to SB Energy) and the Japanese investment powerhouse had committed to invest $20 billion in Indian solar energy sector.
Earlier this month, SoftBank CEO Masayoshi Son has pledged to provide free solar energy to India and other members of the International Solar Alliance (ISA) in 25 years. He made the remarks at a renewable energy conference in India’s National Capital Region.
The 25-year deadline is because Softbank’s contracts to supply energy to ISA countries via a power purchasing agreement expire in 2043.
In addition, NHK, a Japanese broadcaster, in a report published June this year had reported that Softbank was planning to invest upto $100 billion in India’s solar energy sector.
In May this year, SoftBank Group had partnered with the now crippled infrastructure conglomerate IL&FS to develop over 20 gw solar capacity in the country by 2025.
SB Energy has already won bids for setting up 1400 mw of projects in the country, including 300 mw in the Bhadla III Solar Park being developed by Saurya Urja Company of Rajasthan, a joint venture of IL&FS Energy and Rajasthan.
In December 2015, SB Energy made its India debut by winning a 350 MW project in Andhra Pradesh’s Kurnool district. The plant was commissioned in March 2017, 51 days ahead of schedule.
Essel Infraprojects focusing on development of solar assets
Essel Infraprojects, a part of the Subhash Chandra-led Essel group, is into developing large infrastructure projects across multiple sectors, including renewables. It has plans to expand its solar power portfolio by developing its own parks across the country.
