Siemens raises 26% stake in solar plant for self-consumption

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Germany-headquartered engineering firm Siemens Limited today signed an agreement to raise 26% of the equity stake in Mumbai-based Sunsole Renewables, a special purpose vehicle formed by Cleantech to develop a solar plant for captive consumption.

Siemens will acquire Sunsole shares for up to INR 16 million, which is to be paid in one or more tranches.

Sunsole was formed by Cleantech Solar to undertake the construction, operation and maintenance of a solar power plant and to supply, on a captive basis, the power generated from the said solar power plant.

Siemens, in its continuing efforts to reduce its carbon footprint and the impact on climate change, has decided to procure solar power for its manufacturing facility located at Kalwa, Maharashtra.

Pursuant to statutory requirements, to avail such power/electricity for captive usage, Siemens Limited is required to subscribe to at least 26% of the paid-up equity share capital of Sunsole.

“In this regard, the company has executed a power purchase agreement [with Cleantech] and has today entered into a share subscription and shareholders agreement for the subscription of 26% of the paid-up equity share capital of Sunsole Renewables Private Limited, Mumbai, India, subject to fulfilment of conditions precedent as agreed between the parties,” read a Siemens statement.

Post-acquisition, Sunsole will be an associate of Siemens Limited.

The acquisition is proposed to be completed by September 2022, subject to fulfilment of conditions agreed upon between the parties.

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