Business
Sources say SunEdison is in talks with a Finnish firm to sell minority stakes in its India projects.
Reuters reports:
SunEdison Inc (SUNE.N) is in talks to sell minority stakes in its India solar projects to Finland's Fortum (FUM1V.HE), two sources said, as the U.S. firm seeks funds to finish proposed plants in India amid bankruptcy concerns at home. Fortum, a state-controlled utility, said on Tuesday it planned to invest 200 million to 400 million euros ($225 million to $450 million) in solar projects in India and would look at developing large new projects or consider partnerships. Fortum is interested in taking stakes in SunEdison's projects, including a proposed 500-megawatt (MW) plant in Andhra Pradesh state it won last November after an aggressive bid, said the two sources with knowledge of the matter. Fortum spokeswoman Sophie Jolly declined to confirm any talks with SunEdison, but said it was "normal that there would be rumors and speculation around our interest in any solar, and particularly now in India". A SunEdison spokesman in India did not immediately respond to requests seeking comment. It has around 600 MW of projects constructed and financed in India, with plans to build another 1,700 MW in the coming year, according to one of the sources.
Last week, Forbes noted:
The likely collapse of SunEdison’s solar project in India, the first of 32 planned “ultra mega” complexes, could delay Prime Minister Narendra Modi’s goal to increase renewable energy fivefold by several years and probably cost consumers more. As the U.S. solar giant fights to stave off bankruptcy, the 500 megawatt project in Andhra Pradesh state it won last November lies idle with ground yet to be broken. The other projects are still to be bid on. It’s doubtful any rival will pick up the project at the aggressive power pricing promised by SunEdison SUNE 47.50% , which beat out 29 other bidders with a record-low tariff of 4.63 rupees (7 U.S. cents) per kilowatt-hour.That will force Indian officials to tighten auction rules to ensure that only serious, bankable bidders show up, industry sources said. India plans to auction more of the “ultra mega” projects — those which generate at least 500 MW — in the current fiscal year through to March 2017.
But Business Standard wrote:
SunEdison’s exit has nothing to do with the economic environment in India or the falling tariff prices in the country. SunEdison is one of the largest players in the Indian market but not the only one. Its exit is unlikely to impact the market too much as there are other American and Chinese players waiting to step into the gap. Finland based Fortum Finnsurya Energy won a 70 MW NTPC solar project in Rajasthan for Rs 4.34 per unit. Evidently, SunEdison might not have too much of a problem in selling its project.
