IDFC Alternatives-owned Vector Green acquires solar project from IL&FS Energy

Vector Green Energy Pvt. Ltd, the renewable energy platform of private equity firm IDFC Alternatives, has acquired Malwa Solar Power Generation Ltd, a 40 megawatt solar project in Madhya Pradesh from IL&FS Energy Development Company Ltd, according to a media report.

IDFC Alternatives is the private equity arm of IDFC Ltd.

The deal size was not disclosed.

As per VCCircle estimates, the deal size could be Rs 240-250 crore ($37.4-39 million).

Aditya Aggarwal, managing director - infrastructure private equity fund and head – renewables, IDFC Alternatives, told Mint that Vector Green Energy is now focusing on diversifying its portfolio to include some commercial and industrial solar roof-top assets.

IDFC Alternatives did not immediately respond to email queries, seeking comments.

In July 2017, IDFC Alternatives had entered into an agreement with First Solar to acquire the 190 MW of solar power assets across seven projects in India.

IDFC Alternatives’ India Infrastructure Fund II has established Vector Green Energy as the operating-cum-holding company for its investments in the renewable energy space.

VCCircle had reported in September 2016 that IDFC Alternatives is floating a platform to host its renewable energy investments.

Last month, IDFC Alternatives said it is looking at acquiring renewable energy assets of 240 MWp from different owners. Binding agreements for these capacities have already been executed and the firm expects to complete the acquisitions by March, it said.

IDFC Alternatives has about Rs 17,700 crore worth of assets under management, with multiple funds across three asset classes – infrastructure, private equity and real estate, according to its latest annual report.

IL&FS Energy Development Company, a subsidiary of IF&FS, develops, owns and operates power generation and transmission assets in India and abroad. The company has an operational portfolio of 2,870 megawatts of power generation capacity, according to its annual report.

India has a target of achieving grid-connected solar energy capacity of 100 gigawatts by 2022. As on 15 December 2017, its installed grid-connected solar capacity stood at 16.676 gigawatts.

Recent M&A deals in renewable energy sector

In January, VCCircle reported that Avaada Power Pvt. Ltd had bought a solar power project from Canadian Solar.

In July 2017, PE giant Warburg Pincus invested $100 million in Mumbai-based rooftop solar projects developer CleanMax Enviro Energy Solutions Pvt. Ltd.

In March 2017, Leap Green Energy Pvt. Ltd, a renewable energy firm majority owned by JPMorgan Asset Management, agreed to buy the entire operational wind power capacity of Inox Renewables Ltd.

Leave Your Comment(s)