Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

OPG Power Ventures moves into solar with £45mln investment

OPG participated in a competitive bidding process and the company has signed long term (25 year) power purchase agreements.
A huge bank of solar panels
The group is increasingly focusing on renewable energy, in particular in solar energy.

India-focused power generator OPG Power Ventures PLC (LON:OPG) has widened its growth strategy - with a £45mln investment into 62 MW of solar projects.

The board approved the investment in four new solar projects across various locations in Karnataka -  one of the most industrialised states in India - and all four are expected to be generating cash flow by June next year.

OPG participated in a competitive bidding process and the company has signed long term (25 year) power purchase agreements (PPAs) at an average tariff of Rs 5 with Karnataka Power Corporation.

The deal will be funded by internal cash and debt and the targeted return levels are expected to be met without any subsidies being available.

The group is increasingly focusing on renewable energy, in particular in solar energy. 

"With solar panel costs falling, their performance improving and an improving project financing environment, we have continued to prioritise projects that can be funded through a combination of debt and internal resources and that can be expected to generate visible long term revenues which meet our targeted return levels without any subsidies being made available," it said.

The Indian government wants to achieve 100 GW of solar capacity by 2022 with the individual states setting out capacity targets and long term PPA's.

"We will continue to evaluate projects consistent with our stated strategy of adding accretive growth projects that replicate the national energy mix, enable debt to be paid down and dividends to be paid," said OPG.

The firm runs various power plants in India and in 2016, total energy generation increased by 70% to 3,177 gigawatt hours (GWh) from 1,861 GWh in 2015, as the Gujarat plant commenced supplies from its first unit in April 2015 and from its second unit at the end of January 2016

Shares were unchanged at 60.25p each.

View full OPG profile View Profile

OPG Power Ventures Plc. Timeline

Related Articles

oil and gas operations
August 02 2018
The agreement includes up to US$35mln in costs regarding the development of Aminex’s remaining 25% interest in the Ruvuma PSA, which would include the Ntorya project
If contracts can be agreed, they might result in the installation of Powerhouse’s DMG technology at multiple locations
picture of wind turbines
January 11 2018
The construction of more than 600 wind turbines was funded by securing US$1bn of financing during the year.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use