XL Telecom to set up solar farms in Spain
New
Delhi,
Dec
26:
XL
Telecom
and
Energy
Ltd
today
said
it
will
foray
into
power
generation
sector
with
an
investment
of
Rs
10
billion
on
a
solar
farm
in
Spain.
The
investment
would
be
through
company's
wholly-owned
subsidiary
Saptashva
Solar
Ltd
XL
Telecom
plans
to
set
up
a
series
of
solar
farms
in
Spain
with
a
target
for
the
first
year
of
about
28
MW
capacity.
The medium term target is to install close to 200 MW of these farms in Spain and surrounding Portugal alone. Other countries are also being explored for establishing such farms to avail of the benefits offered and to go up the solar value chain, a company statement said.The project is expected to have debt equity ratio of 1:4 and would largely get funded by local banks. It would also have a 25-year power purchase agreement with the local utility company.
In the first year of operations Rs One billion of power would be generated with 20 per cent margins for the next 25 years, it said.
UNI