Areva has announced its plans to start two new subsidiary companies to mobilize the required investment of $3 billion for installing the solar thermal plant.
Areva has initiated dialogues with two leading financial investment companies for starting a partnership venture to build a 1,000 MW solar thermal power plant within the next five to seven years time.
Areva has unveiled its plans to develop the plants exclusively by utilizing the power purchase agreements (PPA) with the state governments in India without availing the facilities available under the National Solar Mission program.
According to Anil Srivastava, Areva Renewables Chief Executive Officer, the company intends to commence the construction of the plant on signing the convincing power purchase agreements with the state governments without waiting for the signing of agreements for the full production capability of 1,000 MW.
Currently he did not name the financial institutions ready to fund the project and clarified that the proposed tie-ups are expected to take place after six months.
Areva also has plans to set up a wholly owned auxiliary company for performing engineering and building work to construct solar turbines and solar islands which are actually synthetic membranes used for keeping solar panels.
The company has spelt out its intentions to create an EPC (engineering, procurement, construction) firm to work in cooperation with a partnering company from India. The Indian company will be engaged in the civil works related to the plant and erect the solar islands and turbines produced by Areva. The created EPC company will sustain Areva’s efforts in building a supply chain and help in exporting manufactured parts to West Asia and Australia.