New Delhi, May 12,2014- Hindustan Power Pvt., an Indian generator backed by Blackstone Group plans to sell shares in its solar unit as it prepares to double investment in photovoltaic projects to $2 billion by 2016. The solar unit has projects pipelined for the next 2 years, which may require $1 billion investment, but there is no immediate need for cash.Commenting on this context, chairman, Hindustan Power Ltd. said, “It’s a sensible business to take out to market.”
With constant rise in coal prices, electricity rates have been up by almost 40% in India, on average since 2010. Where till three years back there was no existence of efficient solar projects, commercial consumers now depend on the solar energy as it is relatively cheaper. Solar power plans to attract $11.7 billion of investment by 2017 into the industry to reduce costly fuel imports.
Hindustan Power has established its name as on of the only and experienced solar developers in the country. The solar unit, which operates farms in India, the U.K., Italy and Germany, will be the first to list of the holding company’s four units that include hydropower, coal power and coal mining, Ratul Puri said in an interview in New Delhi. He also felt that solar power is fit for India. Solar will also become increasingly compelling for India as an energy source because it will reduce the cost of transmission and distribution by generating power close to where it can be consumed, he said.
An added advantage to it is that photovoltaic plants can be built in as short a time as six weeks. India could add a further 2 gigawatts of capacity by 2016 to the 2.6 gigawatts installed currently.