KPI Global signs 1.5 MW solar power supply agreement with steel maker

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Gujarat-based developer KPI Global has announced the signing of a long-term power supply agreement with China Steel Corporation India for 1.5 MW of solar power.

Under the agreement, the developer will sell power to the steelmaker for a period of 20 years as an independent power producer.

China Steel Corporation India, a subsidiary of CSC Taiwan, produces electric steel for motors, transformers, pumps, etc at its plant located in Dahej Industrial Area, Gujarat.

KPI added 25.762 MW as an independent power producer in the year 2019-20, up 172% from the previous year—taking the cumulative capacity to 40.762 MW. The developer’s cumulative ‘captive mode’ portfolio stood at 6.2 MW.

Under captive power production vertical, KPI Global either sells or leases part of its Solarism Plant’s land for the solar power plant of customers and develops the solar power project on their behalf.
KPI reported the financial year 2019-20 as an extremely exciting one for the company, with its core businesses adding momentum. Its revenue from operations grew 72% to Rs 59.28 crore in 2019-20 from Rs 34.51 crore in 2018-19.

“KPIGIL saw a gradual and steady increase in revenue contribution from its key segment-solar power sale business. When the industry saw slowdown in installation growth leading to lowest growth in solar power generation in past six years, our company registered substantial increase in generation due to addition of 25 MW to our existing portfolio of solar power plant in the third quarter of the FY 2019-20”—read a company statement.

“Our capacity increased by 2.6 times from 15 MW to 40 MW leading to 150% growth in our power generation revenue, which was a major contributor to our overall YoY revenue growth of 72%,” it added.
The developer stated its solar power plant sale segment also showed substantial growth of 52% YoY, registering the highest sales in the sector since the advent of this segment.

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