GE Energy Financial Services, an arm of American multinational conglomerate General Electric, has agreed to invest $24 million in a 151 (DC)-megawatt solar photovoltaic power project built by Welspun Renewables Energy Private Limited in Neemuch in Madhya Pradesh, as per a statement. This is also the first investment by GE Energy Financial in any solar project in India as it eyes to strengthen its presence in solar energy generation in India.
With the transaction, the total investment made by GE Energy Financial in renewable energy worldwide has exceeded $10 billion, including $1.8 billion in solar power commitments in seven countries, it said in the statement.
“With its geography, strong economic growth and commitment from the highest levels of government, India has gained incredible potential for the development of solar power. Our investment in Welspun Renewables’ solar project helps realise that potential,” Raghuveer Kurada, business leader for India and South East Asia at GE Energy Financial Services, said.
”The combination of our renewable project development expertise and GE’s financial strength and risk management will help achieve the ambitious goals set by the government to expand the use of renewable energy in India,” Vineet Mittal, vice chairman at Welspun Renewables, said.
Neemuch project, which commenced operations in August 2013, almost eight months ahead of schedule, is one of the world’s largest solar plants and powers 624,000 homes. The project is part of Welspun Renewables’ 308 (DC)-megawatt operational solar portfolio.
The company had won the project in May 2012 by quoting the second-lowest tariff of Rs 8.05 per unit. The initial funding of Rs 880 crore for the project was secured through a consortium of leading financial institutions.
Welspun Renewables is a holding and investment company of various solar and wind power projects of Welspun Energy Limited.
On the other side, GE Energy Financial Services provides financial and technological investment in energy infrastructure projects.
The company expects to continue investing over $1 billion every year in wind, solar and other renewable energy projects, its fastest-growing energy sector and one that often facilitates sales of GE’s energy technology. GE Energy Financial holds approximately $16 billion in assets.